rtmark
LearnBonds.com

Crude Oil Slump – Clean Tech Firms Could See Fall In Profits

OPEC Oil

The value of crude oil has continued to fall today, losing around 5% of its value, reaching a new 12 year low at just $29.42 a barrel. This significant drop is down to an increase in supply (Iran is expected to resume exporting crude oil, after the lifting of economic sanctions.) This will result in a greater supply of crude oil, in an already oversupplied market. China’s economic slowdown is also another key factor in the rapid depreciation in the value of crude oil. With no guarantee of China resuming to its high levels of growth, and with an increasingly crammed market, it is likely that the value of crude oil will continue to tumble. 

Oil Today

There are inevitably some winners and losers from this recent trend. Firms who are heavy users of crude oil & crude oil products, such as airlines, may see a rise in their profits, as their costs will fall. This is dependent on them being able to maintain market share, and continue selling their goods at the same price (they could charge a lower price to stimulate more demand – this should still result in an increase in profitability.)

Firms operating in the clean tech sector can expect to see less demand for their products and less interest in green energy. Low crude oil prices may discourage governments from providing subsidies to firms in the clean tech sector, as there is not a sense of urgency (switching/finding alternatives to crude oil is not a major concern, so long as oil prices are low.) Government provided subsidies are a key component of the clean tech sector, as they can make green products (solar panels) a more viable proposition for households.

Electricity produced from renewable sources has always been, in the short long at least, much more expensive than electricity generated from the burning of fossil fuels (such as oil.) Cheaper oil will only widen this gap, and discourage electricity providers to invest in renewable energy. 

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar