The Impact of the Oil Prices on the Stock Return of Alternative Energy Companies

It is in general said that surge in rock oil price and the wide-cut market always have an of the essence(p) and positive sum on air returns for substitute(a) sinew companies because utility(a) heartiness stocks are closely connected to fluctuation in the oil price. The utility(a) sinew sector is considerably much indefinite than the broad market however it is also a feature that this is one of the sectors which always offer higher returns. The eternal drum in the oil price for past 10 geezerhood has provide an opport building blocky to alternative energy stocks to gain ground world in capital markets all over the world. fit in to Azelton and fellows (2009), as oil price is considered the major force for energy companies, it give the sack be even more spanking force stock market return for alternative energy companies. This may bulge counterintuitive, but the future profitability of alternative energy firms depends on high energy prices because many a lternatives (like solar power and render cells) have higher costs per unit of energy produced. (Azelton 2009) Because of continuous surge in the oil price during the past over 10 years and public cognisance about environmental issues has created a great interest in the development of alternative energy technologies. The period between 2001 and 2010 utter a dramatic increase in the price of appal redolence crude which become a cause of misgiving for both consumers and producers of oil dependent economies. The prediction for growing orbiculate demand and declining supply alarms combined with volatile political panorama in oil producing countries have become causes for the sharp frame out in not only light sweet crude, but other energy commodities, including natural gas. Experts are of the view that the familiar uprising in the Arab world after toppling of death chair Hosni Mubaraks political relation in Egypt and president Zainul Abedins government in Tunisia will have... ! If you indispensability to get a full essay, ordinate it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay