Crude oil’s moves and Schlumberger
What does SLB’s correlation with crude oil mean?
Since June 30, 2017, West Texas Intermediate’s price has risen 3%, following a considerable price fall for crude oil over the previous four months. However, analysts do not see much upside potential in the price of crude oil in the near term. Therefore, a high correlation may be disadvantageous to SLB’s stock price. Schlumberger’s correlation with crude oil fell between the year ended September 8, 2017, and the year prior.
Correlation between SLB’s peers and crude oil
Crude oil’s correlation with the VanEck Vectors Oil Services ETF (OIH) in the year ended September 8, 2017, was 0.71. OIH’s correlation with crude oil rose marginally in the year ended September 8, 2017, from the previous year. In the year ended September 8, 2017, Flotek Industries’ (FTK) correlation with crude oil was 0.38, Tidewater’s (TDW) was 0.23, and Precision Drilling’s (PDS) was 0.64. For more about the oilfield service industry, read The Oilfield Equipment and Services Industry: A Primer.