Tue. Sep 26th, 2023
    Schlumberger Shares Rise as Oil Surpasses $90 Per Barrel

    Schlumberger NV (SLB) shares are trading higher by 1.2% to $61.28 on Monday afternoon, following the news that oil prices have surpassed $90 per barrel. This increase in oil prices has also led to higher trading for several oil and oil-related companies.

    As a leading oilfield services company, Schlumberger provides a wide range of services and technologies to the oil and gas industry. When OPEC predicts a supply shortfall, it indicates that global oil supply might not meet demand. This, in turn, can lead to increased drilling and exploration activities by oil and gas companies to take advantage of higher selling prices for their products.

    The rise in activity due to increased drilling and exploration can result in higher demand for Schlumberger’s services such as drilling, well completion, and reservoir management. This, in turn, can boost the company’s revenues and profitability.

    According to Bloomberg, this recent increase in oil prices is primarily attributed to Saudi Arabia’s extension of production cuts. Despite tightening market conditions, Saudi Arabia has decided to prolong an additional 1 million-barrel-per-day output reduction until the end of the year.

    OPEC’s forecasts also indicate a significant drop in world oil inventories, with an estimated decline of around 3.3 million barrels per day in the next three months, potentially the largest decline since 2007.

    In terms of Schlumberger’s stock performance, it has a 52-week high of $62.12 and a 52-week low of $33.80, according to data from Benzinga Pro.

    In conclusion, the rise in oil prices and OPEC’s supply shortfall forecast have contributed to the increase in Schlumberger’s stock trading. As oil and gas companies ramp up their activities in response to higher prices, the demand for Schlumberger’s services is expected to grow, positively impacting the company’s revenues and profitability.

    – Bloomberg
    – Benzinga Pro