By Vallari Srivastava
(Reuters) -The next week’s results will be a glimpse of how the world’s three major genetic service companies are exploring uncertainty due to US tariffs and recent oil prices.
President Donald Trump promised to increase US oil and gas production by campaigning the motto of “Drill Baby Drill”, but his widespread charges helped the World Trade War and raised concerns about destruction of demand.
Brent crude oil, which is trading at $ 80.15 per barrel when Trump took the office on January 20, is currently rebounding at $ 66.65 per barrel and $ 58.40 on April 9.
This focused on the US shale’s upstream spending. The US shale prioritizes shareholder revenue and reduces debt on production growth.
Analysts warned that additional weaknesses of oil prices, especially the continuous decline and continuous tariff -related uncertainty of less than $ 60 per barrel, could lead to 20%contraction in domestic genetic activities at the current level.
Stifel’s analyst, Stephen Gengaro, said, “E & P expenditure is reduced at the depressed level and E & P expenditure is the main driving force of demand for service companies.
MorningStar analysts estimate that US shale expenditure is about 5% less than 1% of the international market whenever oil prices fall $ 5.
Meanwhile, US tariffs on steel and aluminum imports are ready to expand the cost of genetic service companies.
Halliburton and Baker Hughes will start importing this sector as SLB will finish on Friday, April 22.
According to LSEG data, the revenue per week has been revised several times since January.
Analyzers expect 75 cents in the same quarter in the same quarter of 60 cents per share of Halliburton to 76 cents per week, 48 cents for Baker Hughes, and 74 cents to 2024 for SLB.
Baker Hughes reported that the number of US oil and gas equipment decreased from 7 to 583 on the week of April 11.
Investors will be closely at the management’s opinion on clarity in an environment with little short -term visibility.
Scott Gruber, the energy analyst of CITI Research, said, “The first quarter will be much less.
“All eyes are turning into the future to evaluate where the oil service market is going.”
(Bellari srivastava of Bengaluru, writing by Mrinalika Roy; edited by sriraj kalluvila)
