If an oil pipeline breaks, oil prices might reasonably be expected to rise — but that shouldn’t have an impact on solar shares.
History, however, has shown that it does. Indeed, generally speaking, when oil prices go up, nine times out of 10, clean-energy shares rise too, according to data from Bloomberg. It’s a long-standing correlation that has been something of a curiosity to analysts, given that there is little real-world connection between most renewables and oil.
Solar, wind and geothermal power, after all, produce electricity, while oil is mainly used to make fuel.
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