Solarworld, Alternative-Energy Shares May Drop as Oil Declines

Crude’s 16 percent drop from its 2006 high could foretell further declines, reducing demand for renewable-energy equipment such as solar-power cells from Germany’s Solarworld AG and wind turbine generators from India’s Suzlon Energy Ltd. Their shares soared when oil rose 40 percent in 2005.

“There are cycles to oil prices that directly influence renewables,” said Patsky, who helps oversee $320 million at Boston-based Winslow. “While right now it’s favorable, the situation could easily reverse. I do believe we will see $100-a- barrel oil. I just think we’ll see $45 a barrel first.”

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