Oil's Killing U.S. Power Generators, And They Don't Even Burn It
- BI index of power producers caps worst week in six years
- U.S. gas futures tumble to lowest level since April 28
Do Commodities Still Have Room to Fall?
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Shares of U.S. power generators posted their worst weekly decline in more than six years, dragged down in part by the slide in global oil prices. And they don’t even burn the stuff.
The glut of crude pooling up around the world has cut oil prices 23 percent in three months, and overseas natural gas supplies linked to crude are so cheap that America’s gas exports can’t compete. Traders speculating that more of the power-plant fuel will just remain in the U.S. sent gas futures to the lowest seasonal level in 14 years. And power stocks followed suit last week, with a Bloomberg Intelligence index of generators sliding 12.9 percent, touching a low on Sept. 24 not seen since July 2012.