Duke Energy Corporation

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Bearish -50

6 Surprising Stocks Affected by High Oil Prices

AI-generated analysis

πŸ›’οΈ Rising oil and natural gas prices driven by geopolitical conflict in the Middle East are compressing margins across multiple industries.

✈️ Travel companies like Carnival (CCL) and JetBlue (JBLU) face increased fuel costs that may force price hikes or delays to pass expenses to customers.

πŸ“¦ Parcel delivery giants UPS (UPS) and FedEx (FDX) must rely on extensive energy-intensive networks, leading to recent fuel surcharges implemented in March.

⚑ Utility providers like Duke Energy (DUK) will likely raise electricity prices as natural gas costs escalate, impacting operational expenses for other sectors.

πŸ“‰ Consumer staples makers Procter & Gamble (PG) and Conagra Brands (CAG) face higher raw material costs including plastics and fertilizers derived from oil and gas.

πŸ” Food companies like Conagra will see ingredient prices rise as natural gas is required to produce the fertilizer needed for growing vital crops.

πŸ“‰ Companies such as consumer staples makers may resort to shrinkflation, reducing product sizes while maintaining prices to protect their margins.

πŸ›’ Overall, high energy costs are expected to be passed on to consumers across various goods and services including travel, shipping, and groceries.

πŸ”— The article concludes that customers will ultimately pay more for everything from trips to packages to household items due to rising oil prices.

πŸ“Š The Motley Fool analyst team identifies UPS as not being among their top 10 stocks for investment despite recommendations in the financial sector.

πŸš€ Historical examples show Netflix and Nvidia on the Stock Advisor list previously generated massive returns over many years.

Bullish Signals
  • The Motley Fool Stock Advisor analyst team recommends Duke Energy as one of their 10 best stocks for investors to buy now.
  • recommendation
  • Named as a recommended stock by The Motley Fool
Risk Factors
  • Duke Energy (NYSE: DUK) faces increased operational costs as rising natural gas prices make electricity production more expensive.
  • The company plans to quickly pass these higher energy costs on to customers through increased electric bills, which could face market resistance given consumer budget tightening.
  • Carnival (NYSE: CCL) and JetBlue (NASDAQ: JBLU) are likely to see margins compress due to rising fuel costs for their ships and airplanes respectively.
  • Parcel delivery companies like UPS (NYSE: UPS) and FedEx (NYSE: FDX) operate extensive networks of trucks, airplanes, and sorting facilities that all require energy, exposing them to ongoing fuel price spikes.
  • Rising oil prices also impact consumer staples makers like Procter & Gamble (NYSE: PG) and Conagra Brands (NYSE: CAG), as they rely on oil and gas for packaging plastics and chemical ingredients.
  • Natural gas is used to produce fertilizer, meaning the cost of vital food ingredients for companies like Conagra will rise alongside energy costs.
  • The article suggests companies may resort to 'shrinkflation' strategies, selling less product for the same price, which could negatively impact customer sentiment and demand.
Full Analysis
Rising oil prices driven by geopolitical conflict in the Middle East are expected to ripple through various sectors, impacting companies beyond just direct energy users. Travel and shipping industries face immediate headwinds as fuel costs increase, directly affecting margins for major carriers. Carnival Corporation (NYSE: CCL) and JetBlue Airways (NASDAQ: JBLU) operate diesel-fueled cruise ships and jet fuel-dependent airplanes, respectively, making them highly sensitive to rising energy costs. To counter margin compression, these companies may need to implement fuel surcharges or raise prices for consumers, though any price hikes are likely to be delayed as long as possible if oil prices remain elevated. Parcel delivery giants such as United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX) are similarly vulnerable due to their extensive networks of trucks, airplanes, and sorting facilities that require significant energy to operate. Higher electricity costs resulting from increased natural gas prices will further burden utilities like Duke Energy (NYSE: DUK), which may pass these expenses directly to customers. This cascade of rising costs extends to consumer staples manufacturers, including Procter & Gamble (NYSE: PG) and Conagra Brands (NYSE: CAG). These companies face inflationary pressure not only from shipping logistics but also from the use of oil-derived plastics in packaging and natural gas used in fertilizer production for food ingredients. Companies across these sectors are expected to attempt to protect their margins by passing costs onto consumers, potentially leading to higher delivery charges, increased grocery bills, and more expensive travel. UPS has already enacted higher fuel surcharges effective March 2, followed by FedEx on March 16. Analysts also note that consumer staples makers may resort to strategies like "shrinkflation," selling less product for the same price, given limited leeway with budgets already constrained consumers. Ultimately, the article highlights that the broader economic impact of high oil prices will likely manifest as increased spending across essential categories, from leisure travel to daily necessities. The article concludes with a promotional section for The Motley Fool Stock Advisor, noting that UPS is not among their 10 current stock recommendations while maintaining positions in Procter & Gamble, and recommending Carnival Corp., Duke Energy, and FedEx. Historical examples provided include Netflix on December 17, 2004, and Nvidia on April 15, 2005, as past successful picks. Stock Advisor claims an average return of 898% compared to the S&P 500's 183%, with returns data dated March 22, 2026. Disclosure notes indicate Motley Fool positions in United Parcel Service and recommendations for several of the stocks discussed in the analysis.