Low Oil Prices Pave The Way For Investment Opportunities

This week, oil prices made their way below $28 per barrel, and some analysts began to warn that the record lows weren't at rock bottom just yet, according to the Wall Street Journal.

Oil's continuing weakness has hammered energy firms over the past year, and judging by the first month of 2016, this year isn't likely to look much brighter for them. While it may be too early to place bets on a recovery in the oil market just yet, some analysts say now is the time to invest in renewables.

Renewable Opportunity

Cheap energy prices have been negative for companies that produce renewable energy like solar and wind, so share prices in that sector have been consistently declining as oil prices continue to suffer.

However, analysts believe that Washington's focus on expanding the use of alternative energy bodes well for the industry's long-term future and that now could be a great time to buy while prices are low.

Related Link: What Airline Stocks Are Benefiting From Lower Oil Prices?

Growth Opportunity

Data from the U.S. Energy Information Administration showed that solar energy accounted for just 0.4 percent of the nation's power generation in 2014, so the space has quite a bit of room for growth. It appears that both lawmakers and the public are serious about reducing carbon emissions, so the industry is likely to grow exponentially over the next few years as efforts to cut down on the U.S.'s carbon footprint ramp up.

What To Buy

Worries about economic stability in China have taken some smaller, foreign solar plays off the table, as they are likely to experience a great deal of volatility in the year to come.

However, large, Western companies like SunPower Corporation SPWR or First Solar, Inc. FSLR make for safer bets.

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Posted In: NewsCommoditiesMarketsTrading IdeasenergygasOiloil pricespetroleumrenewablesU.S. Energy Information Administration
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