Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why Oil and Renewables Are Decoupling Again
WTI crude is down 3.1% over five days while solar giant Enphase has plunged 10.1% and First Solar has dropped 7.8%; clean energy stocks are selling off even faster than oil. Lucas and Luna examine what is driving this decoupling, from a 50-year low in the labor force participation rate that is dampening demand expectations, to rising core inflation that is pushing interest-rate-sensitive renewable developers out of favor. They also discuss the bizarre resilience of natural gas at $3.19 per MMBtu, which is bucking the broader energy sell-off. The conversation is grounded in the live market…
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