Crude oil’s price drop has grabbed the attention of anyone with a stake in energy markets, or any market for that matter, as oil is a ubiquitous part of the entire global economy. Ever since oil and gas became the global energy standard, the market has been subject to price booms and busts, so today’s oil price drop is not surprising; however, this price decline has a different feel than others because it is being driven by an oversupply rather than the typical lack of demand brought on by a stalled economy.
“It’s certainly not in the norm to see oil prices collapse as much as they have over the past four to five months,” says Hinds Howard, senior master limited partnership (MLP) and infrastructure research analyst with CBRE Clarion Securities. “Its impact is going to be varied across the sector — certain companies will do better in this environment and other companies will see their growth slow down, and certain companies will see their results next quarter