Renewable Energy Stocks Tumble as Oil Prices Plummet Amid Easing Middle East Tensions
South Korean renewable energy stocks took a hit on July 28 as international oil prices plummeted due to easing Middle East tensions. SK Eternix led the decline, falling 29.42% from the previous session, followed by HD Hyundai Energy Solutions at 17.80%. Hanwha Solutions and Daemyung Energy dropped 12.67% and 14.32%, respectively, while Doosan Fuel Cell ended trading at its daily price limit down 29.91%. SK Oceanplant also declined 18.91%.
The decline in oil prices reversed a short-lived surge that had buoyed the stocks earlier in the month. Rising tensions between the US and Iran had driven up international crude prices, but the recent easing of military actions led to a sharp drop in oil prices. Brent crude futures for September delivery traded down 4.9% from the previous session at $92.04 per barrel.
Analysts argue that the correlation between oil prices and renewable energy demand has weakened as the cost of renewable power generation has fallen significantly. They point out that more than 80% of global new power plant demand is being met by renewable energy, making it a mainstream source of power generation.