Related: Poor-Performing Energy Sector is Bouncing Back

Last quarter, profits for ExxonMobil (XOM) and Chevron (CVX) jumped 50%. BP (BP) saw its third-quarter profits double. The same goes for Dutch Shell (RDSA),” reports ETF Daily News. “Then there’s Statoil (STO), another major oil producer. Its profits nearly quadrupled last quarter to $2.3 billion. This is incredibly bullish for oil services companies. It means producers will drill more holes, pump more oil, and buy more machinery and equipment.”

While the Organization of Petroleum Exporting Countries have moved to cut production, expectations of continued U.S. shale production remain a deterring factor. Nevertheless, recent U.S. inventory drawdowns, which if sustained, could support the current price levels.

If crude oil prices continue rebounding, shale hydraulic fracturing companies could increase spending on exploration and production this year, supporting further gains in energy services-related exchange traded funds.

For more information on the oil market, visit our oil category.

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