Last year when oil made its steady climb to nearly $150 a barrel, Supperlatticeâ€™s stock went from $0.34 to $2.55 in just two months for 650% gains. When oil prices began to descend, so did SLAT.OB. What makes Supperlatticeâ€™s stock price so strongly correlated with oil prices? The company is focused on developing and marketing next-generation lithium-powered batteries to replace gas powered engines.
With oil producers postponing and canceling major projects, many fear that oil prices will once again spiral out of control because of lack of supply when the economy turns around. Francisco Blanch, head of global commodities research at Merrill Lynch, wrote, â€œThe current WTI crude oil price weakness may be setting the stage for another rally in crude oil prices as the world emerges from the recession. Delayed and canceled projects on energy infrastructure will only add to the same supply bottlenecks that gave origin to the commodity super-cycle of the last seven years.â€
Rising concerns regarding emissions produced by gas powered vehicles coupled with a potential outbreak of energy prices have once again attracted the investment community to fully-electric vehicles. With the necessary infrastructure in place and availability at virtually every home and building, all-electric vehicles would be extremely easy to implement and are capable of grabbing market share from gas-powered vehicles very quickly.
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