As is by now well-known, oil prices have been on the climb as a result of a number of factors, but primarily by investor fears about what could come of a number of volatile political situations currently in development in Western Asia.
Combine the increase in uncertainty with a larger US rig count and increase in drilling and exploration efforts to tap into the stateside shale boom, and it looks as though oilfield services companies are set to thrive in the near-term.
Core Laboratories NV (CLB) was nearly 4 percent higher to $163, and Baker Hughers (BHI) was up 3 percent to $50.45. Industry giant Schlumberger Limited (SLB) was up 1.9 percent to $86.73, and Halliburton (HAL) had risen 1.75 percent to $50.40. Larger firms outperformed the industry at large, which was up about one quarter of a percent on the day.
While major integrated oil companies have lost some footing in recent months, with technical difficulties at refineries and difficulty meeting production guidance, other energy companies have done reasonably well. Among these have been the independent oil and gas companies, such as Marathon Oil (MRO) and EOG Natural Resources (EOG) , as they have been quicker to the draw on the changing drilling environment that has come about as of substantial new discoveries of shale deposits throughout the North American continent.
But oilfield services companies are also, if not perhaps better, disposed to take advantage of the increasing focus on shale deposits. Deutsche Bank claimed that Baker Hughes, Halliburton (a stock that was profiled in Equities.com last week), and Nabors Industries (NBR) , up 2 percent to $16.27, are the three best picks at the moment.
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