Will Rising Oil Prices Finally Help Green Companies?
All indications report the second half of 2009 saw oil prices continue to escalate and many experts believe triple digit prices per barrel will be the norm again. Oil futures on the New York Mercantile Exchange have risen more than 50% since the beginning of 2009. Higher gas prices should have pundits predicting the American public will jump back onto the green energy band wagon. Surprisingly, financial gurus speculate that the rise in oil prices may not be the boon to green companies that many people expected. First, prices will probably continue to rise as China’s economy becomes even more oil hungry, fueled by massive government stimulus measures. That means oil supplies are unlikely to be able to keep up with crushing demand as China ramps up its manufacturing activity to an unprecedented degree. Couple that with the fact that America’s oil inventories have been falling steadily and it has been a long, hard 2009 for U.S. consumers. Why isn’t this all GOOD news for green energy comp
