The price of crude oil has plummeted in recent weeks, hitting its lowest point since 2009. Driven by a perfect storm of increased oil supply and weakened oil demand, the price drop has rattled financial markets and provoked uncertainty about where oil prices are headed in 2015.
When oil prices tumble, there are winners and losers. Among the winners are car drivers and airlines, who find it cheaper to fill their fuel tanks. Among the losers are oil-producing companies, who get fewer dollars for every barrel of crude they sell.
What about power companies? It’s tempting to think that utilities, insofar as they are key players in the energy world, might also be adversely affected by convulsions in the oil market. But that would be incorrect.