Financial Times FT.com

The Short View: Transportation stocks

By John Authers, Investment Editor

Published: May 8 2008 19:49 | Last updated: May 8 2008 19:49

Transport companies run on oil, and lots of it. High oil prices are bad for them. But the market does not appear to believe this.

Since the Federal Reserve’s emergency rate cut in January, the price of crude oil has gone up a remarkable 37.5 per cent. Energy stocks have benefited. MSCI’s world energy index is up 21.25 per cent since then.

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