As oil prices hit new highs in today’s trading, the oil related exchange traded funds (ETFs) also rose on earnings reports and merger talks.
Schlumberger (SLB) was the first oilfield services company to report first quarter earnings and posted a nearly 14% increase and predicted growth for the rest of the year. The stock rallied, even though the results missed forecasts, reports John Porretto for Associated Press.
Halliburton (HAL) announced it is considering a bid for its rival, Britain’s Expro International Group, says Reuters.
Meanwhile, oil was pushed higher today to new records today, above $116 a barrel. John Wilen of Associated Press reports that oil supply has been threatened by attacks on pipelines in Nigeria, which is a major supplier of oil to the U.S. The militant group claiming responsibility promised further attacks on the country’s petroleum industry.
All of this news is affecting oil related ETFs, such as:
- Oil Services HOLDRs (OIH), holds 10.7% of SLB and 9.5% of HAL; up 5.4% year-to-date
- iShares Dow Jones US Oil Equipment & Services (IEZ), 16.8% SLB; 7.4% HAL; up 7% year-to-date
- SPDR S&P Oil & Gas Services & Equipment (XES), 4.6% HAL; up 6.9% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.