FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks
Schlumberger

Schlumberger Stock Rallies As WTI Oil Gets Back Above The $70 Level

Shares of Schlumberger gained upside momentum after WTI oil managed to get above the $70 level amid supply concerns in the U.S. Other oil-related stocks are among top gainers in S&P 500 today.

It should be noted that investors did not rush to buy oil-related stocks before WTI oil managed to get back above the $70 level. It looks that stock traders were a bit skeptical on sector’s performance due to worries about the spread of the Delta variant of coronavirus, but now they are finally ready to buy oil-related stocks.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Not surprisingly, shares of industry leaders like Schlumberger benefit from traders’ interest in the segment. The stock is down by roughly 25% from its yearly peak that was reached at the beginning of June, so it may also attract value-oriented investors.

Advertisement

What’s Next For Schlumberger Stock?

Analysts expect that Schlumberger will report earnings of $1.26 per share in the current year and $1.77 per share in the next year, so the stock is trading at less than 16 forward P/E which looks cheap in the current market environment.

It should be noted that investors and traders have recently become more cautious when dealing with oil-related stocks due to coronavirus-related risks and the general shift towards renewable energy.

However, oil remains in high demand, and OPEC has just reiterated its forecast that world oil demand will grow by 6 million barrels per day (bpd) in 2021. In 2022, oil demand is projected to grow by 4.2 million bpd. This scenario looks bullish for oil services firms like Schlumberger which benefit from robust oil prices through higher demand and robust pricing for their services.

At current valuation levels, Schlumberger stock may attract value-oriented investors and opportunistic traders who may want to shift some funds from high-growth stocks as the market continues to pull back from historic highs.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker