Crude oil’s fall may be positive for oil companies

By Anupama Chandrasekaran

NEW YORK (Reuters) – Here’s one for the mindbender file: The drop in oil prices could be good news for many oil companies.

While at first glance that might seem counter-intuitive, some stock strategists contend crude’s move below $50 a barrel may be a precursor to a narrower trading range for oil, which in turn portends profit stability for energy companies.