Schlumberger’s one-week returns
In the week ending June 8, Schlumberger (SLB) rose 0.7%. In comparison, the Energy Select Sector SPDR ETF (XLE), which tracks an index of US energy companies, also rose 0.7%. The VanEck Vectors Oil Services ETF (OIH), which tracks an index of 25 oilfield equipment and service companies, remained nearly unchanged. The SPDR S&P 500 ETF (SPY) rose 1.7%, while the SPDR S&P Oil & Gas Equipment & Services ETF (XES) declined 0.2%. Schlumberger accounts for 0.40% of SPY.
Crude oil’s price and rigs
As of June 8, the WTI crude oil price was 0.1% lower compared to a week ago. Despite weakness in crude oil’s price, two additional rigs came online in the United States in the week ending June 8. To learn the latest about energy prices, read Decoding the Energy Sector and the S&P 500 on June 6.
Factors that impacted Schlumberger’s returns
- There were increased sales of drilling and measurement products and services in North America due to high demand for rotary steerable systems required in drilling longer laterals in shale oil production.
- Seasonality in drilling activity had a negative impact on Schlumberger’s international business. Seasonality impact rig-related activities in the Northern Hemisphere and the North Sea and dented Schlumberger’s integrated drilling services projects in the United Kingdom, continental Europe, the Far East, Australia, and Venezuela
Next, we’ll discuss Schlumberger’s stock price forecast.