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only shares that are readily available for trading in the market) and three month average daily trading volume are included in the Oil Services Index. As of December 31, 2021, the Oil Services Index included 25 securities of companies with a market capitalization range of between approximately $305 million and $42 billion and a weighted average market capitalization of $14.4 billion. These amounts are subject to change. The Funds 80% investment policy is non-fundamental and may be changed without shareholder approval upon 60 days prior written notice to shareholders.

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ORASCOM INVESTMENT HOLDING S.A.E GDR

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VANECK OIL SERVICES ETF

Oil prices kicked off the week with a notable rally, driven by OPEC+'s decision to postpone an anticipated production increase ahead of the <a href="https://www.benzinga.com/topic/2024-election">imminent U.S. presidential elections. </a>
The oil cartel and its allies, including Russia, opted to delay plans to ramp up output by another month, citing ongoing market weakness and sluggish demand.
On Monday, West Texas Intermediate (WTI) crude — as closely tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) — surged as much as 3% to hit $71.50 per barrel, its highest since Oct. 25, while Brent crude rose 2.7% to reach $75 per barrel.
See Also: <a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a>
These gains effectively erased last week&#8217;s losses, which followed Israel's limited response to Iran — a development that experts said reduced the risk of a broader conflict in the Middle East, providing temporary relief for oil markets.
OPEC+ announced on Sunday that it would maintain its production cut of 2.2 million barrels per day (bpd) through December. 
Originally, the group had planned to increase output by 180,000 bpd in December, but it conditioned this hike on favorable price conditions. 
The next formal meeting of OPEC+ ministers is scheduled for December 1, although the group has the flexibility to convene extraordinary meetings or alter its policies at any time.
<h3 class="wp-block-heading">US Sanctions Policy Could Shape Future Of Oil</h3>
The outcome of the upcoming U.S. presidential election could be crucial for the oil market, particularly with regard to sanctions policies that affect OPEC+ producers like Russia, Iran, and Venezuela. 
&#8220;After plummeting during the first Trump administration, production in Iran and Venezuela has recovered under President Joe Biden, with the focus of sanctions moving to Russia,&#8221; wrote S&amp;P Global. 
Combined, Iran and Venezuela pumped 4.15 million bpd in September, up from 3.2 million bpd in February 2022, according to Platts' OPEC+ Survey by Commodity Insights, as both countries are exempt from quotas under the OPEC+ agreement, allowing them to pump as much as they can. 
Sanctions policy is expected to remain a key factor influencing the global oil supply, particularly amid ongoing geopolitical tensions in Ukraine and the Middle East.
The Biden-Harris administration has imposed extensive sanctions on Russia, aiming to weaken its military capabilities and hinder its economic resources that support the ongoing war in Ukraine. These sanctions, coordinated with allies like the G7 and EU, target key areas, including Russia&#8217;s defense sector, critical supply chains, and financial networks.
However, Jim Burkhard, vice president of research at S&amp;P Global Commodity Insights, suggested that a second Donald Trump administration might be more inclined to <a href="https://www.benzinga.com/news/24/10/41303548/kremlin-critic-warns-russia-could-grow-stronger-if-trump-wins-white-house-will-basically-be-handing">loosen sanctions on Russia</a>. 
Both parties are likely to maintain pressure on Iran given its ongoing conflict with Israel.
<h3 class="wp-block-heading">US Energy ETFs To Watch Amid Rising Oil Prices</h3>
The surge in oil prices could buoy U.S. energy stocks, particularly those tied to exploration, production, and refining. Here are five key U.S. energy ETFs that may see gains as crude prices continue their upward trend:
<ul>
<li>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which had already risen by 1% during premarket trading in New York on Monday</li>
<li>SPDR S&amp;P Oil &amp; Gas Explor. &amp; Product ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</li>
<li>Invesco Oil &amp; Gas Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>)</li>
<li>VanEck Oil Refiners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRAK#NYSE">CRAK</a>)</li>
<li>EA Series Trust Strive U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRLL#NYSE">DRLL</a>)</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/11/41709016/us-stocks-likely-to-open-in-green-amid-hints-of-tentativeness-on-election-eve-expert-says-brace-for">US Stocks Likely To Open In Green Amid Hints Of Tentativeness On Election Eve: Expert Says Brace For Volatility Ahead Of Fed&#8217;s Rate Decision</a></li>
</ul>
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Oil Prices Spike By Over 3% As OPEC+ Delays Production Increases Ahead Of US Elections: 5 Energy ETFs To Watch Monday

Analysts cut the price target on BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) following the company&#8217;s third quarter results reported on Tuesday.
BP&#8217;s revenue fell short at $47.25 billion, below the $52.56 billion consensus, with oil production down <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41598840/bp-stock-drops-as-q3-revenue-misses-mark-production-declines-debt-rises" rel="noreferrer noopener">6% year over year</a>.
For FY24, BP&nbsp;continues to expect&nbsp;both reported and underlying upstream production to be&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">slightly higher than the prior year</a>.&nbsp;
Meanwhile, the company continues to expect $25 billion&nbsp;of divestments and other proceeds from the second half of 2020 through 2025.
RBC Capital Markets analyst Biraj Borkhataria lowered the price target to 480p (from 525p) while reiterating the Sector Perform rating.
The analyst writes that BP faced significant challenges lately, and without an improving macroeconomic environment, they believe the investment case remains weak.
The company appears to have missed an opportunity in 2022-23, a peak period in the cycle, to significantly reduce its leverage, adds the analyst.
Borkhataria says that this oversight has left its distribution program less resilient compared to its peers.
The analyst observed a stronger focus on the balance sheet this quarter compared to previous periods, with net debt increasing from $33.3 billion to $35.3 billion (including leases).
Borkhataria expects this figure to rise to approximately $40 billion by the end of the year.
The analyst says that BP requires a reset of expectations ahead of its February 2025 Capital Markets Day (CMD).
Adjusting the &#8216;surplus&#8217; payout ratio seems prudent, and the analyst believes it would be wise to allocate more cash towards strengthening the balance sheet.
Given the lackluster returns in recent years, Borkhataria thinks that prioritizing de-leveraging over growth capital expenditures in the transition engines should be the focus.
The analyst&#8217;s revised EPS estimates reflect a decrease of 6% for 2024 and 10% for 2025, primarily due to lower refining earnings, partially balanced by increased contributions from gas and low-carbon initiatives.
Goldman Sachs analyst Michele Della Vigna reduced the price target to 560p from 580p while reaffirming the Buy rating. Also, the analyst reduced the <a href="https://www.benzinga.com/quote/BP/analyst-ratings">ADR price target to $44.0 from $46.0.</a>
The analyst anticipates lower oil and gas price realizations than expected, particularly for European gas, which may result in diminished earnings and cash flow generation.
Additionally, lower-than-expected recovery rates in mature offshore oil and gas fields could lead to higher decline rates than currently projected, ultimately resulting in lower production growth and cash flow than their current estimates, adds the analyst.
Vigna adjusted the estimates, resulting in EPS changes of approximately -2%, -7%, and -5% for 2024, 2025, and 2026, respectively, primarily due to lower refining margins and reduced oil trading profits.
Price Action: BP shares are down 0.66% at $29.17 at the last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41607065/schlumbergers-onesubsea-lands-key-contract-with-bp-to-power-deepwater-kaskida-project-details" target="_blank" rel="noreferrer noopener">Schlumberger&#8217;s OneSubsea Lands Key Contract With BP To Power Deepwater Kaskida Project: Details</a></li>
</ul>

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iShares Dow Jones US Oil Equipment & Services Index Fund

BP Faces Price Forecast Cuts As Analysts Flag Weak Earnings And Rising Debt Challenges

Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) shares are trading lower on Tuesday. The company disclosed that its OneSubsea joint venture won a contract from BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) for a subsea boosting system as part of the greenfield development of the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/b41598382/slb-onesubsea-awarded-subsea-boosting-contract-for-bps-kaskida-project-in-gulf-of-mexico" rel="noreferrer noopener">Kaskida project in the deepwater U.S</a>.
This contract signifies an important achievement in the enduring collaboration between SLB OneSubsea and BP, as it is their inaugural engineering, procurement, and construction (EPC) agreement for a subsea boosting system.
The project involves a supplier-led high-pressure subsea pump solution, featuring an integrated power and controls umbilical, as well as the requisite topside equipment.
The OneSubsea subsea boosting system is a crucial technology for bp&#8217;s inaugural Paleogene field development.
It will provide the necessary artificial lift to optimize production by enhancing reserve recovery while minimizing energy consumption.
This month, SLB reported revenue growth of 10.2% year over year to $9.159 billion, missing the consensus of $9.25 billion. Adjusted EPS increased 14% to 89 cents,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41401700/schlumberger-q3-earnings-mixed-results-as-middle-east-shines-and-latin-america-falters" rel="noreferrer noopener">above the consensus of 88 cents</a>.
Investors can gain exposure to SLB via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: SLB shares are down 2.38% at $40.41 at the last check Tuesday.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41435424/these-analysts-slash-their-forecasts-on-schlumberger-following-q3-earnings" target="_blank" rel="noreferrer noopener">These Analysts Slash Their Forecasts On Schlumberger Following Q3 Earnings</a></li>
</ul>

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Schlumberger's OneSubsea Lands Key Contract With BP To Power Deepwater Kaskida Project: Details

Crude oil prices plummeted over 6% on Monday, approaching levels not seen since early October, as investors processed news of targeted <a href="https://www.benzinga.com/news/24/10/41567809/oil-etfs-plunge-premarket-after-israels-strikes-on-iran">Israeli airstrikes in Iran</a>.
U.S. energy stocks followed suit during premarket trading in New York, with sector ETFs posting sharp losses at the start of the week. 
Contracts on West Texas Intermediate (WTI) light crude, as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), fell over 6% to around $67 per barrel on Monday morning, marking what could be the worst one-day drop since July 2022.
The sell-off followed Israeli airstrikes over the weekend that targeted military facilities in Iran but spared the country's oil infrastructure.
According to the Israel Defense Forces, the strikes were "targeted and precise," focusing on Iranian missile production and air defense installations. 
This measured response likely averted a deeper crisis in the oil market, as analysts warned that a broader assault on Iran's energy sector could have risked up to 1.7 million barrels per day (bpd) of Iranian crude exports and led to further regional destabilization. 
U.S. President Joe Biden had cautioned Israel against actions that would directly impact Iran's oil output, warning that such moves could prompt Tehran to retaliate by targeting oil shipping routes in the Middle East.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png" alt="" class="wp-image-617043" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28085347/image-274.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Analysts Expect Oil Prices To Remain Under Pressure</h3>
Goldman Sachs analysts had previously estimated that a sustained 1 million bpd disruption to Iranian oil supply could have pushed Brent prices up by $10–$20 per barrel. 
With no immediate threat to Iran's oil exports, the bank's forecast for Brent reaching the mid-$80s by late 2025 now appears overly optimistic compared to the consensus view.
The restrained nature of Israel's actions has led some analysts to predict that oil prices will remain subdued, especially in light of broader market dynamics. 
Warren Patterson, head of commodity strategy at ING Group, highlighted that Israel's focused response leaves "the door open for de-escalation," which seems to be reflected in Monday&#8217;s price action.
"If we do see some de-escalation, it would allow fundamentals to dictate price direction once again," Patterson explained, adding that a projected market surplus in 2025 &#8220;would mean that oil prices are&nbsp;likely to remain under pressure.&#8221;
Ole Hansen, head of commodity strategy at Saxo Bank, indicated that crude prices have now retraced most of the gains made in early October, which were fueled by Chinese economic stimulus and concerns over potential disruptions to Iran's supply. Hansen pointed out that "sluggish demand" and the impending reintroduction of OPEC+ barrels could further weigh on oil prices.
<h3 class="wp-block-heading">China's Declining Demand, OPEC+ Production Decisions Add To Bearish Sentiment</h3>
On the demand side, Chinese consumption—accounting for roughly 15% of global oil demand—has been trending downward since May 2024
According to Pascal Devaux, an economist at BNP Paribas, this decline is tied not only to China's economic slowdown but also to structural changes within its energy sector. "Around 45% of new car registrations in China are for electric vehicles, either battery-powered or hybrid," Devaux said, underscoring the impact of the country's low-carbon transition on oil demand.
Capital Economics forecasts that if OPEC+ follows through on its plan to unwind voluntary production cuts initiated in October, an increase in oil supply combined with weak demand growth could drive prices lower throughout the remainder of 2024 and into 2025.
<h3 class="wp-block-heading">US Energy Stocks See Sharp Losses</h3>
Sector ETFs posted notable declines in early trading:
<ul>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks large-cap U.S. energy companies, was down 2.3% at the start of Monday's session. APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), and Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>) all registered losses between 3% and 4%.</li>
</ul>
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), a broader measure of exploration and production stocks, slid 2.8%. Kosmos Energy Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Vital Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTLE#NYSE">VTLE</a>) are both down 4%.</li>
</ul>
<ul>
<li>VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropped 1.7%. Companies like ProPetro Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PUMP#NYSE">PUMP</a>), Liberty Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LBRT#NYSE">LBRT</a>), and Noble Corporation plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>) were hit particularly hard, each falling by about 4%.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41571526/exxon-shell-warren-buffett-backed-occidental-petroleum-and-other-oil-stocks-tumble-in-premarket-afte">Exxon, Shell, Warren Buffett-Backed Occidental Petroleum And Other Oil Stocks Tumble In Premarket After Israel&#8217;s Strikes On Iran</a></li>
</ul>
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Crude Oil Faces Steepest One-Day Drop In Over Two Years, Energy Stocks Plunge: Prices 'Are Likely To Remain Under Pressure,' Analyst Says

The Israeli military confirmed on Thursday <a href="https://www.benzinga.com/markets/asia/24/10/41385179/hamas-chief-oct-7-mastermind-yahya-sinwar-possibly-dead-idf-conducts-dna-tests-after-gaza-clash">the death of Yahya Sinwar</a>, the top leader of Hamas, with one word: &#8220;Eliminated.&#8221; 
What Happened: Israel Defense Forces killed Sinwar — Israel's most wanted target since the war with Hamas began on Oct. 7 — in a firefight in Gaza.
Sinwar orchestrated an assault that killed about 1,200 people and led to the abduction of over 200 others.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Eliminated: Yahya Sinwar.
&mdash; Israel Defense Forces (@IDF) <a href="https://twitter.com/IDF/status/1846957737487278263?ref_src=twsrc%5Etfw">October 17, 2024</a></blockquote>
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In a prepared <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/10/17/statement-from-president-joe-biden-on-the-death-of-yahya-sinwar/">statement</a>, President Joe Biden said the IDF &#8220;relentlessly pursued Hamas's leaders&#8221; with the help of U.S. intelligence.
&#8220;There has rarely been a military campaign like this, with Hamas leaders living and moving through hundreds of miles of tunnels, organized in multiple stories underground, determined to protect themselves with no care for the civilians suffering above ground,&#8221; Biden said. 
&#8220;Today, however, proves once again that no terrorists anywhere in the world can escape justice, no matter how long it takes.&#8221;
Sinwar's body was retrieved after an exchange of fire on Wednesday, according to the <a href="https://www.nytimes.com/live/2024/10/17/world/israel-lebanon-iran-gaza-news?campaign_id=190&amp;emc=edit_ufn_20241017&amp;instance_id=137113&amp;nl=from-the-times&amp;regi_id=136109156&amp;segment_id=180692&amp;user_id=e415429009fa21c5b8b4141c24d72bca">New York Times</a>, citing Israeli authorities. His identity was verified using dental records and fingerprints that matched those on file, Israel Police said. There was no immediate response from Hamas regarding his death.
See Also: <a href="https://www.benzinga.com/news/24/10/41112728/us-boosts-military-presence-in-middle-east-deploys-fighter-squadrons-amid-rising-tensions-with-iran">US Boosts Military Presence In Middle East As Tensions Spike With Iran</a> 
Why It Matters: Sinwar's killing marks a significant development in the yearlong conflict. 
So far, the war in Gaza devastated the region and its people. Despite being only 141 square miles, Gaza is home to over 2 million people. 
Gaza's health ministry reports over 41,000 deaths. Per the Associated Press, Gaza's health ministry <a href="https://apnews.com/article/israel-hamas-war-gaza-health-ministry-health-death-toll-59470820308b31f1faf73c703400b033">doesn't distinguish between civilians and combatants</a>. About 1.9 million Palestinians have been <a href="https://apnews.com/article/israel-palestinians-hamas-war-anniversary-statistics-e61765035c725b3c8d4840e2bab565cd">displaced</a>.
Sinwar&#8217;s death also presents an &#8220;opportunity&#8221; to proceed with negotiations between Israel and Hamas and end the war, Vice President Kamala Harris said, per <a href="https://www.bloomberg.com/news/articles/2024-10-17/harris-says-sinwar-s-death-offers-opportunity-to-end-gaza-war?srnd=phx-latest&amp;sref=TBDibEcD&amp;embedded-checkout=true">Bloomberg</a>. 
Both sides remain deadlocked over key issues. 
Israeli Prime Minister Benjamin Netanyahu addressed the nation and promised the Israeli military would secure the release of all hostages. See below for coverage via CNN.
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Defense exchange-traded funds (ETFs) at last check Thursday afternoon, were trending up with the exception of the SPDR S&amp;P Aerospace &amp; Defense ETF:
<ul>
<li>IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) rose 1.8% to $154.70.</li>
<li>Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) is up 0.17% to $119.</li>
<li>SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) is down 0.29% to $162.77.</li>
</ul>
Oil ETFs: 
<ul>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), was up 0.15% at $72.51.</li>
<li>The VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) was down 0.25% at $286.69.</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/10/41336413/oil-prices-take-largest-plunge-in-over-a-year-as-israel-vows-to-spare-iranian-facilities-energy-stoc">Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities</a></li>
</ul>
Image: Shutterstock.

iShares Dow Jones US Aerospace & Defense Index Fund

Israeli Military, With Help Of US Intelligence, 'Relentlessly Pursued' Deceased Hamas Leader

Oil prices took a sharp dive on Tuesday, tumbling over 5% in morning trading in New York, as geopolitical tensions in the Middle East slightly eased after Israeli Prime Minister Benjamin Netanyahu reportedly pledged that Iran's crude oil infrastructure would be spared from <a href="https://www.benzinga.com/news/24/10/41321699/oil-prices-drop-after-netanyahu-says-israel-will-attack-military-not-oil-or-nuclear-targets-in-iran">any potential retaliatory strikes. </a>
West Texas Intermediate (WTI) crude, the U.S. benchmark, tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), nosedived to $70 per barrel, down more than 5% as of 10 a.m. ET. This marks the steepest one-day decline in over a year.
The selloff followed a Monday report from The Washington Post that said that Netanyahu assured the Biden administration that Israel would avoid targeting Iranian oil and nuclear facilities in any retaliatory military actions.
The assurance suggested a narrower scope of potential conflict, reducing fears of widespread supply shocks in the global oil market.
Market analysts had previously warned that an Israeli strike on Iran&#8217;s oil infrastructure could send crude prices skyrocketing by $20 per barrel, highlighting concerns that Tehran would retaliate by attacking oil installations throughout the Gulf region, potentially triggering a broader energy crisis.
<h3 class="wp-block-heading">Crude Suffers Worst Drop In Over 1 Year As Middle East Supply Fears Recede</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="469" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png" alt="" class="wp-image-596308" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1024x469.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-300x137.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-768x351.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118-1536x703.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/15102337/image-118.png 1884w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Image: <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101524&amp;t=be2bearmibe3na1">Benzinga Pro</a></figcaption></figure>
<h3 class="wp-block-heading">Energy Sector Tanks: US Oil Giants Lead Declines</h3>
The immediate reaction in the markets was swift: U.S. energy stocks plunged, while airlines and cruise lines — typically sensitive to fuel prices — enjoyed a sharp relief rally.
The energy sector was one of the biggest losers on the day. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major U.S. energy companies, slid 2.8%, setting up for its worst day since late April. 
АРА Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) and Valero Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) were the worst performers within the XLE ETF, with declines of about 4%.
Companies involved in upstream exploration and production were hit even harder, with the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) falling 3.1%. Talos Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>), Kosmos Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) and Crescent Energy Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRGY#NYSE">CRGY</a>) each tumbled by over 4%. 
Downstream oil service providers also struggled, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) dropping 3.6%. Major oilfield services companies like Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) both fell about 3%, while Transocean Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>) underperformed, down 5%. 
<h3 class="wp-block-heading">Airlines And Cruise Lines Rally: Lower Fuel Costs, Strong Earnings Expectations Lift Sentiment</h3>
While energy stocks suffered, sectors reliant on cheaper fuel prices thrived. Airlines and cruise lines, in particular, were among the best performers within the S&amp;P 500 as the prospect of lower oil prices offered some relief.
Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) surged 4.3%, while Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) jumped 5.3%. 
Goldman Sachs recently raised its price target on Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) from $195 to $220, anticipating strong earnings momentum. Similarly, NCLH saw its price target lifted from $22 to $24.
In the airline space, American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) rallied 3.5%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) gained 1.2%, reaching its highest level since February 2020, and Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) rose 1.3%.
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</ul>
Photo via Shutterstock.

Mid Cap

Markets

Movers

CRGY

NCLH

TALO

Oil Prices Take Largest Plunge In Over A Year As Israel Vows To Spare Iranian Facilities: Energy Stocks Sink, Airlines, Cruise Lines Rally

Oil is trading more than 5% higher Thursday on the heels of President Joe Biden&#8216;s statement that the U.S. spoke with Israel about a possible attack on Iran's oil facilities.
"We're in discussions about that,&#8221; Biden said during an interaction with reporters. 
Biden seemingly indicated he wasn&#8217;t partial to the idea of striking at Iran&#8217;s oil facilities, before cutting himself off: &#8220;I think that would be a little&#8230; anyway.&#8221; See video below.
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When one reporter asked whether Biden would &#8220;allow&#8221; Israel to retaliate against Iran, Biden swiftly corrected him: &#8220;First of all, we don&#8217;t &#8216;allow&#8217; Israel. We advise Israel.&#8221;
<a href="https://www.benzinga.com/news/23/10/35136071/israel-under-siege-unprecedented-hamas-attack-sparks-intense-clashes-netanyahu-says-we-are-at-war">Since Oct. 7, 2023</a>, Israel has been fighting Hamas in Gaza as well as Hezbollah in Lebanon. Both groups are considered terrorist organizations by the U.S. 
See Also: <a href="https://www.benzinga.com/news/24/10/41134015/jd-vance-tim-walz-debate-sets-a-different-tone-candidates-discuss-israel-iran-escalation-immigration">JD Vance, Tim Walz Debate Sets A Different Tone, Candidates Discuss Israel-Iran Escalation</a>
<h3 class="wp-block-heading">Oil And The Israel-Iran Conflict</h3>
Iran is the seventh-largest oil producer in the world. The country, which backs the Hezbollah militant group, exports around half its production abroad. 
China, where <a href="https://www.benzinga.com/markets/asia/24/08/40596334/asia-markets-mixed-europe-gains-crude-oil-falls-on-chinese-demand-concerns-global-markets-today-whil">oil demand is weak</a>, is its main customer.
Since Iran's <a href="https://www.benzinga.com/news/global/24/10/41126038/iran-attacks-israel-with-missiles-middle-east-tensions-escalates-s-p-500-stocks-bitcoin-fall-as-oil">missile attack on Israel</a> on Monday, the price of barrels has fluctuated. As of Oct. 3, the price of West Texas Intermediate (WTI) crude oil is $73.83 per barrel. This reflects a 5.32% increase from the previous day&#8217;s close of $70.10.
The price of Brent crude is approximately $77.76 per barrel. It has fluctuated within a range of $74.33 to $77.58 for the day.
The U.S., which is producing more oil under Biden than any other U.S. presidential administration, has been filling its reserves. The Biden administration acquired an additional <a href="https://www.benzinga.com/markets/eurozone/24/10/41146905/geopolitical-risks-may-be-biggest-threat-to-markets-boe-says">6 million barrels of crude</a> just this week.
It&#8217;s worth noting that ongoing violence in the Middle East puts the Straits of Hormuz at risk. A third of tanker traffic and a fifth of LNG frozen gas is transported through that passageway. 
The U.S. and its allies are likely determined to keep the Strait open due to its strategic importance. Any attempt to block the Strait could provoke military intervention.
Iran controls much of the northern coastline of the Strait and has previously threatened to block the passage in response to sanctions or conflicts with Western countries. 
<h3 class="wp-block-heading">Market Reaction</h3>
So far, market reaction to the Middle East conflict is relatively mute compared to February 2022 when Russia invaded Ukraine.
At the time, the oil market reacted with significant volatility and disruption, leading to a sharp rise in global prices. 
Brent crude, the global benchmark, surged above $100 per barrel for the first time since 2014, and by March 2022, it had briefly spiked to $139 per barrel, near the all-time high.
Oil-related exchange-traded funds, or ETFs, were trending up at last check Thursday afternoon. Here&#8217;s where they stand: 
<ul>
<li>United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) is up 4.05% to $75.71</li>
<li>Invesco DB Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBO#NYSE">DBO</a>) is up 4.08% at $15.06</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) is up 3.1% at $139.56</li>
<li>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) up 1.65% at $92.22</li>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up 6.59% at $28.81</li>
<li>VanEck Vectors Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) is up 1.89% at $297.58</li>
</ul>
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</ul>
Image: Shutterstock

Government

Regulations

Oil Prices Rally: Biden Confirms US 'Discussions' With Israel About Striking Iran Facilities

On Monday, Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) disclosed the formation of a joint venture (JV) with ADNOC Drilling Company and Patterson-UTI Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PTEN#NASDAQ">PTEN</a>) called <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b41093343/slb-and-adnoc-drilling-partner-for-unconventional-oil-and-gas-development" rel="noreferrer noopener">Turnwell Industries LLC OPC</a>.
The JV aims to accelerate the UAE&#8217;s unconventional oil and gas program. It targets the completion of 144 wells by 2025, with the potential for additional wells in a second phase.
ADNOC Drilling will hold a 55% stake, with SLB and Patterson-UTI holding 30% and 15% stakes in the JV. SLB will provide drilling, completion services, project management, and digital solutions.
This deal is expected to enable the companies to leverage cutting-edge innovations in AI, smart drilling design, completions engineering, and production solutions.
Tarek Rizk, SLB&#8217;s president for the Middle East and North Africa region, said, &#8220;We are proud to join forces with ADNOC Drilling in this strategic partnership that demonstrates SLB&#8217;s leading position in the region deploying innovative digital, drilling and completion technologies in developing unconventional energy resources.&#8221;&nbsp;
&#8220;UAE&#8217;s unconventional energy assets hold a promising future, and we are very much looking forward to elevating their performance in a safe and sustainable way.&#8221;
Abdulrahman Abdulla Al Seiari, chief executive officer, ADNOC Drilling stated, &#8220;Turnwell will not only unlock the immense potential of the UAE&#8217;s world-class unconventional energy resources but will also set new benchmarks for the global energy industry. We are proud to lead the way in responsibly shaping the future of energy, both in the UAE and beyond.&#8221;
Last month, Schlumberger partnered with NVIDIA to create generative AI solutions focusing on subsurface exploration and <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40939729/energy-meets-ai-schlumberger-teams-up-with-nvidia-to-supercharge-industry-efficiency" rel="noreferrer noopener">data management in energy</a>.
Investors can gain exposure to SLB via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: SLB shares are down 0.74% at $41.64 premarket at the last check Tuesday.
Image via Shutterstock
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</ul>

PTEN

SLB, ADNOC Drilling, Patterson-UTI Join Forces To Accelerate UAE's Unconventional Oil Program

Schlumberger (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) shares are trading higher on Tuesday. The company launched the Lumi data and AI platform, integrating advanced AI into workflows<a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40894766/slb-launches-ai-powered-lumi-platform" rel="noreferrer noopener"> across the energy value chain</a>.
The Lumi platform offers open, secure access to high-quality data across all energy domains, boosting collaboration and decision-making. It integrates the latest large language models&nbsp;(LLMs) and SLB&#8217;s domain-specific models, facilitating scalable AI adoption.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40810215/schlumbergers-breakthrough-in-lithium-production-details" rel="noreferrer noopener">Schlumberger&#8217;s Breakthrough In Lithium Production: Details</a>
The Lumi platform will be available on major cloud providers and on-premises, offering global access.
SLB&#8217;s Delfi platform will leverage Lumi&#8217;s capabilities for improved reservoir modeling, seismic interpretation, and drilling workflows, while boosting automation and efficiency for low-carbon energy operations.
The Lumi platform combines technologies from top partners with SLB&#8217;s expertise to enhance data and AI access across the energy production cycle.
Rakesh Jaggi, president, Digital and Integration, SLB, said, &#8220;Through the Lumi data and AI platform, we will liberate and contextualize data for our global customers across domains – enabling them to scale advanced AI workflows and accelerate their ongoing digital transformation.&#8221;
Investors can gain exposure to SLB via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: SLB shares are up 0.42% at $40.57 premarket at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40857832/halliburton-at-a-disadvantage-analyst-says-schlumberger-and-baker-hughes-in-better-" target="_blank" rel="noreferrer noopener">Halliburton At A Disadvantage, Analyst Says: Schlumberger And Baker Hughes &#8216;In Better Position&#8217;</a></li>
</ul>

Energy Gets AI Boost: Schlumberger's Lumi Platform To Power Next-Gen Digital Transformation

After falling to the lowest level since December 2021, on Tuesday, oil recorded its first weekly gain in a month, buoyed by Hurricane Francine, which disrupted production in the Gulf of Mexico. Brent crude rose above $72 per barrel, pushing its weekly climb to about 2%, while West Texas Intermediate traded below $70 per barrel.
However, higher oil prices failed to fuel the rally in the energy space with many ETFs still in red. The popular ETFs &mdash; Energy Select Sector SPDR (ARCA:XLE), Vanguard Energy ETF (ARCA:VDE), SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (ARCA:XOP), Fidelity MSCI Energy Index ETF (ARCA:FENY) and VanEck Vectors Oil Services ETF (ARCA:OIH) &mdash; were down more than 2% each. All these ETFs have a Zacks Rank #1 (Strong Buy) or #2 (Buy).
The storm had prompted a production shutdown of around 730,000 barrels a day (bpd) in the Gulf of Mexico (about 42% of Gulf production), according to the US Bureau of Safety and Environmental Enforcement. The US Bureau of Safety and Environmental Enforcement stated that about 24% of crude production and 26% of natural gas output in the US Gulf of Mexico were offline due to the storm.
<h3>Energy ETFs in Focus</h3>
Energy Select Sector SPDR: It is the largest and the most popular ETF in the energy space, with an AUM of $34.1 billion. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 22 securities in its basket and charges 9 bps in annual fees.
Vanguard Energy ETF: It provides exposure to a basket of 113 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Vanguard Energy ETF has amassed $7.6 billion in its asset base and charges 10 bps in annual fees.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF: It provides exposure to 53 oil and gas exploration and production companies by tracking the S&amp;P Oil &amp; Gas Exploration &amp; Production Select Industry Index. It has an AUM of $2.6 billion and charges 35 bps in fees per year.
Fidelity MSCI Energy Index ETF: It follows the MSCI USA IMI Energy Index, holding 112 stocks in its basket. FENY charges 8 bps in annual fees and has accumulated $1.5 billion in its asset base.
VanEck Vectors Oil Services ETF: It tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. VanEck Vectors Oil Services ETF holds 26 stocks in its basket. With an AUM of $1.5 billion, it charges 35 bps in annual fees.
<h2>Concerns</h2>
<h2>Weak Demand/Supply Trends</h2>
Despite the positive momentum, oil prices are still trading close to three-year lows amid persistent concerns over slowing demand.
International Energy Agency (IEA) lowered the oil demand outlook by 70,000 bpd to 900,000 bpd for this year, citing weak China demand and feeble growth in other regions. The Organisation of Petroleum Exporting Countries (OPEC) also slashed the 2024 oil demand growth forecast for the second time. It expects world oil demand to rise by 2.03 million bpd in 2024, down from last month&#39;s forecast of growth of 2.11 million bpd.
Last week, OPEC and its allies extended the oil production cuts of 2.2 million bpd through November and planned to phase out those beginning in December until November 2025. However, it will increase production in 2025 for the first time since 2022. The first addition to supply, of 180,000 bpd, is now expected in December. Additionally, growing output from the United States, Guyana, Brazil and Canada will continue to take a toll on oil prices.
<h2>Geopolitical Tensions</h2>
Geopolitical risks in the Middle East will continue to provide some support to oil prices. The ongoing conflict in Gaza and the potential for a broader regional escalation, involving Iran, Hamas and Hezbollah are contributing to market uncertainty.
<h2>Analysts Go Bearish</h2>
Analysts in a Reuters poll reduced their oil price forecasts for 2024 for the fourth consecutive month. The poll shows Brent prices to average $82.86 per barrel this year, down from $83.66 a barrel expected in the July forecast. West Texas Intermediate is projected to average $78.82 per barrel in 2024, down from $79.22 a barrel expected in last month&#39;s poll.
Analysts believe the bullish drivers of the ongoing OPEC+ cuts and geopolitical flare-ups in the Middle East will be offset by the bearish demand trends and oil imports in China and Europe.
<h2>Will the Fed Provide Some Respite?</h2>
The Fed is expected to cut interest rates at its meeting scheduled to take place on Sept 17 and 18. Lower interest rates tend to lower the expenses of purchasing goods and services, potentially stimulating economic expansion and driving oil demand.
<a href="https://www.zacks.com/stock/news/2335964/rise-in-oil-price-fails-to-lift-energy-etfs-what-s-ahead?cid=CS-BENZ-FT-etf_news_and_commentary-2335964">To read this article on Zacks.com click here.</a>

Analyst Ratings

FENY

Rise in Oil Price Fails to Lift Energy ETFs: What's Ahead?

Schlumberger N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) disclosed that it has successfully demonstrated sustainable lithium production <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40789109/slb-achieves-breakthrough-results-in-sustainable-lithium-production" rel="noreferrer noopener">at scale at its Clayton Valley, Nevada, plant</a>.
SLB&#8217;s integrated solution offers a complete, end-to-end process that includes advanced impurity treatment and concentration technologies to produce high-purity lithium carbonate or hydroxide.
The company aims to accelerate the market availability of responsibly sourced lithium products. The solution extracts lithium from brine 500 times faster than traditional methods, using only 10% of the land.
The company stated that the plant achieved a verified lithium recovery rate of 96% from brine when operating at about one-tenth the size of a commercial facility.
The traditional lithium extraction process requires vast land and depletes water, leaving harmful residues. SLB&#8217;s solution minimizes water use and returns processed brine to its source, reducing environmental impact.
Gavin Rennick, president of SLB&#8217;s New Energy business said, &#8220;SLB&#8217;s demonstration plant in Clayton Valley proves our unique integrated approach to produce scalable quantities of lithium in the fastest, most economical and sustainable way for today&#8217;s market. This accelerates deployment of viable commercial-scale facilities for high-quality lithium products that are the backbone of our electrification economy.&#8221;
In July, Schlumberger reported a second-quarter 2024 revenue increase of 13% year-over-year to $9.139 billion,&nbsp;beating the consensus of $9.076 billion. Adjusted EPS increased 18% Y/Y to $0.85,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39859998/schlumberger-outshines-expectations-solid-international-growth-fuels-q2-success" rel="noreferrer noopener">above the consensus of $0.83</a>.
Investors can gain exposure to SLB via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: SLB shares are up 0.25% at $39.69 premarket on the last check Wednesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Schlumberger's Breakthrough In Lithium Production: Details

On Friday, Baker Hughes Company&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) reportedly stated that U.S. energy firms reduced the number of oil and natural gas rigs for the second consecutive week, marking the first such decline since late June.
The oil and gas rig count decreased by one to 585 for the week ending August 23, bringing the total count down 47 rigs, or 7%, below the same period last year, reported Reuters.
The oil rigs remained steady at 483, while gas rigs fell by one to 97 this week. The rig count dropped about 20% in 2023 following significant increases in 2021 and 2022, due to lower oil and gas prices, rising costs, and a focus on debt reduction and shareholder returns.
As per the report, U.S. oil futures have risen about 5% in 2024 after a drop of 11% in 2023, whereas U.S. gas futures are down about 19% in 2024 following a 44% plunge in 2023.
Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/08/40313301/oil-prices-eye-fourth-straight-day-of-gains-as-geopolitical-risks-overshadow-opecs-cooler-demand-f" rel="noreferrer noopener">Oil Prices Eye Fourth Straight Day Of Gains As Geopolitical Risks Overshadow OPEC&#8217;s Cooler Demand Forecast</a>
The rise in oil prices is expected to drive U.S. crude output up from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.7 million bpd in 2025, per the latest EIA outlook.
Conversely, gas producers cut back on drilling earlier this year after prices fell to 3½-year lows in February and March.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/40010863/these-analysts-boost-their-forecasts-on-baker-hughes-after-strong-q2-results" rel="noreferrer noopener">These Analysts Boost Their Forecasts On Baker Hughes After Strong Q2 Results</a>
Investors can gain exposure to BKR via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: BKR shares are up 1.33% at $35.69 at the last check Monday.
Photo via Shutterstock
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</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Media

Baker Hughes Says US Oil And Gas Rig Count Declines For Second Week: Report

Oil futures surged significantly on Monday morning, with West Texas Intermediate (WTI) light crude rising 3% to over $77 per barrel as of 9:00 a.m. ET, amid escalating geopolitical tensions in the Middle East and<a href="https://www.benzinga.com/markets/commodities"> fresh supply disruptions in Libya.</a>
This marks the third consecutive day of oil price gains after hitting their lowest levels since January on Wednesday, Aug. 21. With Monday&#8217;s increase, WTI has climbed more than 7% over the past three sessions, setting the stage for the strongest three-day rally since late March 2023.
What Happened: On Saturday, Aug. 24, the Iran-backed Lebanese militant group Hezbollah launched a large-scale assault against Israel, using rockets and drones in retaliation for the killing of senior Hezbollah commander Fuad Shukr by Israeli forces. The attack involved hundreds of rockets and at least 20 drones targeting various locations in northern Israel.
In response, Israel carried out airstrikes on multiple Hezbollah positions in southern Lebanon, hitting at least 17 sites in an effort to thwart further large-scale attacks. Israeli officials described these strikes as preemptive measures aimed at neutralizing Hezbollah&#8217;s capabilities.
The situation remained volatile on Sunday, with ongoing exchanges of fire, fueling concerns about a broader regional conflict. Israeli Prime Minister Benjamin Netanyahu warned that the strikes against Hezbollah are not &#8220;the end of the story.&#8221;
In Libya, the political and security environment has deteriorated sharply. The eastern government, a rival to the Tripoli-based administration, announced a halt to oil production and exports following a dispute over the leadership of the Central Bank, exacerbating the global supply concerns.
According to Reuters, Waha Oil Company, a subsidiary of the National Oil Corp and operator of a joint venture with ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), announced plans to cut crude production and warned that output could come to a complete stop due to protests and pressures.
Also Read: <a href="https://www.benzinga.com/news/earnings/24/08/40548945/temu-parent-pdd-posts-86-q2-topline-growth-stock-drops-after-ceo-flags-upcoming-challenges">Temu Parent PDD Posts 86% Q2 Topline Growth, Stock Drops After CEO Flags Upcoming Challenges</a>
Why It Matters: The recent rebound in equity markets after the early August selloff was largely driven by fading fears of a U.S. recession. 
Investors also responded positively to central bankers&#8217; signals of potential interest rate cuts, as confidence grew that inflation is moving closer to the 2% target. 
However, the sudden spike in crude oil prices, driven by supply concerns, could dampen the positive investor sentiment toward risk asset and curb further disinflationary gains in the economy. 
Market Reactions: Energy-related companies saw gains in Monday&#8217;s premarket trading. 
The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) rose over 1%. Companies in the oil services sector also benefited, with the VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) up 1.8%. Firms in the upstream market, tracked by the SPDR S&amp;P Oil &amp; Gas Exploration and Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), were 1.3% higher.
Top premarket movers included: 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Chg %</td>
</tr>
<tr>
<td>Sitio Royalties Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STR#NYSE">STR</a>)</td>
<td>3.8%</td>
</tr>
<tr>
<td>Talos Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TALO#NYSE">TALO</a>)</td>
<td>2.9%</td>
</tr>
<tr>
<td>Transocean Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIG#NYSE">RIG</a>)</td>
<td>2.7%</td>
</tr>
<tr>
<td>Petroleo Brasileiro SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBR#NYSE">PBR</a>)</td>
<td>2.2%</td>
</tr>
<tr>
<td>Helix Energy Solutions Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLX#NYSE">HLX</a>)</td>
<td>2.1%</td>
</tr>
<tr>
<td>Murphy Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUR#NYSE">MUR</a>)</td>
<td>1.8%</td>
</tr>
<tr>
<td>Noble Corporation plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NE#NYSE">NE</a>)</td>
<td>1.7%</td>
</tr>
<tr>
<td>EOG Resources, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OEG#NYSE">OEG</a>)</td>
<td>1.7%</td>
</tr>
<tr>
<td>Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>)</td>
<td>1.5%</td>
</tr>
<tr>
<td>Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>)</td>
<td>1.5%</td>
</tr>
<tr>
<td>ConocoPhillips </td>
<td>1.4%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40535770/feds-powell-hints-at-policy-shifts-dollar-plunges-gold-rallies-as-investors-flock-to-rate-cut-wi">Fed&#8217;s Powell Hints At Policy Shifts, Dollar Plunges, Gold Rallies As Investors Flock To Rate-Cut Winners: This Week In The Markets</a></li>
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Photo: Shutterstock

Tech

GPRE

Oil Prices Rally As Middle East Tensions Rise, Libya Warns Of Potential Production Halt: 10 Energy Stocks On The Move Monday

Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) shares are trading nearly flat today. On Wednesday, the company was reportedly hit by a cyberattack.
The attack affected operations at Halliburton&#8217;s north Houston campus, and some global connectivity networks, reported Reuters.
Halliburton acknowledged a system issue and said it is working with &#8220;leading external experts&#8221; to resolve the problem, per the report, which cited a spokesperson&#8217;s emailed statement. Halliburton has instructed some staff not to connect to internal networks.
Last month, Halliburton reported second-quarter revenue of $5.833 billion, which missed the $5.949 billion consensus, and EPS of $0.80, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39885917/halliburton-lowers-2024-outlook-analysts-forecast-more-muted-2025" rel="noreferrer noopener">which was&nbsp;in line with the consensus.</a>
There have been some cyberattack incidents in recent times. This month, Google confirmed that a group linked to Iran&#8217;s Revolutionary GuarIran&#8217;sbeen attempting to breach the personal email accounts of individuals associated with the US presidential campaigns of President Joe Biden and <a target="_blank" href="https://www.benzinga.com/news/24/08/40387430/google-confirms-iranian-hackers-linked-to-revolutionary-guard-targeted-trump-biden-and-harris-campai" rel="noreferrer noopener">former President&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/08/40387430/google-confirms-iranian-hackers-linked-to-revolutionary-guard-targeted-trump-biden-and-harris-campai" rel="noreferrer noopener">Donald Trump</a>.
Investors can gain exposure to HAL via&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: HAL shares are trading flat at at $31.21 at the last check Thursday.
Photo via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Halliburton's North Houston Campus Affected by Cyberattack: Report

Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) shares are trading lower after the company reported second-quarter&nbsp;2024 revenue of&nbsp;$5.833 billion,&nbsp;missing the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39856421/halliburton-announces-second-quarter-2024-results" rel="noreferrer noopener">consensus of&nbsp;$5.949 billion</a>.
Completion and Production revenue was&nbsp;$3.4 billion, flat Q/Q. Revenue growth from increased completion tool sales and stimulation activity abroad, as well as improved well-intervention services, was offset by lower stimulation and completion tool sales in the U.S. and decreased artificial lift services in North America.
Drilling and Evaluation revenue came in at $2.4 billion, flat Q/Q. Results benefitted from increased drilling services in Europe, North America, and Asia, higher wireline activity in the Western Hemisphere and Europe, and a rise in international testing services.
HAL&#8217;s North&nbsp;America&nbsp;revenue fell&nbsp;3%&nbsp;Q/Q to&nbsp;$2.5 billion&nbsp;due reduced pressure pumping services in U.S. land and lower activity in the Gulf of Mexico.
International revenue was&nbsp;$3.4 billion, an increase of&nbsp;3%&nbsp;Q/Q, with revenue from Latin America&nbsp;flat Q/Q, Europe/Africa&nbsp;+4% Q/Q,&nbsp;and Middle East/Asia&nbsp;+5% Q/Q.
Operating income stood at $1.032 billion (+5% Q/Q), with an operating margin of about 18% in the quarter.
EPS of $0.80 was <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">in line with the consensus.</a>
The company repurchased ~$250 million of its common stock during the quarter.
Operating cash flow stood at&nbsp;$1.1 billion&nbsp;for the quarter, and free cash flow was&nbsp;$800 million.
Jeff Miller, Chairman, President, and CEO, said, &#8220;In our international markets we see strong demand for Halliburton&#8217;s services, high activity levels, and equipment tightness across all major basins.&#8221;
Investors can gain exposure to the stock via VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: HAL shares are down&nbsp;4.53%&nbsp;at&nbsp;$34.80 premarket&nbsp;at&nbsp;the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Earnings

Buybacks

Halliburton's Q2 Revenue Miss Highlights Challenges In US Market, Despite International Gains

Schlumberger Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and ChampionX Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHX#NASDAQ">CHX</a>) received a second request from the United States Department of Justice regarding Schlumberger&#8217;s planned <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39608177/slb-provides-update-on-planned-acquisition-of-championx" rel="noreferrer noopener">acquisition of ChampionX</a>.
SLB currently anticipates the transaction to conclude in late 2024 or early 2025, subject to regulatory approvals and customary closing conditions.
The acquisition was approved by ChampionX stockholders at a special meeting on June 18, 2024.
In April, Schlumberger announced that it would acquire ChampionX. In exchange for each ChampionX share, the shareholders will <a target="_blank" href="https://www.benzinga.com//node/38054329" rel="noreferrer noopener">receive 0.735 shares of Schlumberger.&nbsp;</a>
Post closure, Schlumberger expects to realize annual pretax synergies of around $400 million within the first three years <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">through revenue growth and cost savings</a>.&nbsp;
Also, this week, Schlumberger and TotalEnergies SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTE#NYSE">TTE</a>) entered into a 10-year partnership to co-create scalable digital solutions to improve access to energy resources while <a href="https://www.benzinga.com/pressreleases/24/07/b39593270/slb-and-totalenergies-announce-10-year-partnership-to-collaborate-on-next-generation-digital-solut" target="_blank" rel="noreferrer noopener">enhancing performance and efficiency</a>.
Stock Prediction 2024
Schlumberger&#8217;s revenue growth in FY23 was 17.96%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at -0.2%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.0%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Schlumberger stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Schlumberger's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Schlumberger operates in the Energy sector. The stock has experienced average annual growth of 14.42% compared to the 18.29% average of its peer companies. This is below the broader sector movement of Schlumberger.
Investors can gain exposure to Schlumberger via&nbsp;VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: SLB shares are down 0.13% at $46.63 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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</ul>

DOJ Asks More Questions About Schlumberger-ChampionX Merger: Details

Schlumberger Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) and Equinor ASA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQNR#NYSE">EQNR</a>) shares are trading higher today after Schlumberger won a contract from Equinor for the Subsea Production Systems (SPS) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39524155/slb-onesubsea-awarded-contract-by-equinor-for-groundbreaking-all-electric-subsea-project" rel="noreferrer noopener">project in offshore Norway</a>.
The contract is for the front-end engineering design (FEED) of a 12-well, all-electric SPS project in the Fram Sør field.
Under the agreement, SLB OneSubsea will be directly awarded future engineering, procurement, and construction contracts conditional upon a final investment decision.
The Fram Sør project will employ SLB OneSubsea&#8217;s standard subsea tree design, enhanced with a fully electrified power, control, and actuation system.
This project aims to accelerate the global adoption of electric subsea technology, establishing new benchmarks for enhanced operator control, operational efficiency, and reduced offshore emissions.
Mads Hjelmeland, chief executive officer of SLB OneSubsea stated, &#8220;This technology has effectively created the IoT for subsea trees, providing operators with improved control through live performance and condition monitoring. We are grateful for the collaboration with Equinor and the other joint-industry-partners over the past six years that has made this milestone possible.&#8221;
Investors can gain exposure to SLB via IShares U.S. Oil Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>) and VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>) as well as to EQNR via Amplify ETF Trust Amplify Natural Resources Dividend Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NDIV#NYSE">NDIV</a>) and SGI Enhanced Global Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GINX#NASDAQ">GINX</a>).
Price Action: EQNR shares are up 1.51% at $28.17 and SLB by 1.32% at $46.84 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

EQNR

GINX

NDIV

Schlumberger Lands Electric Subsea Project With Equinor In Norway: Details

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are expected to extend their current production cuts this weekend, as per delegates and analysts.
What Happened: The OPEC+ alliance, which was scheduled to meet in person in Vienna on Jun. 1, has now moved the meeting to a virtual platform on Jun. 2. The group is currently implementing a combined 5.86 million barrels per day of supply cuts, with 2 million barrels per day set to expire at the end of this year, as per a CNBC <a href="https://www.cnbc.com/2024/05/31/oil-alliance-opec-could-extend-production-cuts-this-weekend.html?taid=66595f9eb890320001ff036f&amp;utm_campaign=trueanthem&amp;utm_medium=social&amp;utm_source=twitter%7Cmain">report</a> on Tuesday.
Market participants are closely watching whether the remaining 2.2 million barrels per day of cuts, which are in place until the end of the second quarter, will be extended. This is in light of projected demand increases, particularly in the summer months.
Three OPEC+ delegates, speaking on the condition of anonymity, told CNBC that the 2.2 million-barrels-per-day supply reductions are likely to be prolonged. The group is also monitoring individual members&#8217; quota compliance and has requested overproducers to implement additional cuts, with Iraq and Kazakhstan having detailed compensation plans.
The OPEC+ coalition&#8217;s decision to extend production cuts is influenced by the anticipated rise in summer demand, driven by factors such as the conclusion of China&#8217;s refinery maintenance and increasing U.S. consumption as summer approaches. 
"Come June, China would be largely out of refinery maintenance, U.S. consumption is improving as summer moves closer, so June should already see negative crude balances. And then August is the peak month for tightness," Viktor Katona, lead crude analyst at Kpler, said according to the report.
Investors interested in some of the most profitable oil ETFs on the market to determine if the oil sector aligns with their investment strategy might consider the following options: Vanguard Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>), VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>), United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>), SPDR S&amp;P Oil &amp; Gas Equipment &amp; Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XES#NYSE">XES</a>), and ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>).
See Also: <a href="https://www.benzinga.com/news/24/05/39084577/elon-musk-mocks-steve-jobs-agrees-apple-could-be-light-years-ahead-of-competition-if-it-embraced-ope?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Mocks Steve Jobs, Agrees Apple Could Be &#8216;Light Years&#8217; Ahead Of Competition If It Embraced Open</a>
Why It Matters: Recent geopolitical events, such as the Israeli forces entering <a href="https://www.benzinga.com/markets/emerging-markets/24/05/39048961/all-eyes-on-rafah-as-israeli-forces-enter-safe-zones-spain-ireland-and-norway-officially">safe zones in Gaza</a>, have also added to the uncertainty in the oil market. The ongoing tensions in the Middle East have contributed to global inflation and energy security concerns, further influencing OPEC+&#8217;s decision-making.
Oil prices have remained range-bound in the first half of the year, with the potential for spikes due to developments in the Middle East. 
Rystad&#8217;s Jorge Leon noted that regional escalations could add a risk premium of up to $10 per barrel. OPEC+ delegates told CNBC that while the situation in the Gaza Strip still adds some pressure, the market has mostly absorbed its impact.
OPEC+ must also navigate its relationship with the U.S., which has criticized the coalition&#8217;s supply cuts over gasoline price concerns. Last week, the Biden administration announced the release of 1 million barrels of gasoline from reserves to lower pump prices. Similar measures were taken with the Strategic Petroleum Reserve during the COVID-19 pandemic. 
However, an OPEC+ delegate noted these actions are unlikely to have a long-term impact beyond summer price relief. The U.S. usually aims to replenish its emergency state reserves stockpile, according to the report.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39063828/elon-musk-slams-joe-biden-says-president-cares-a-lot-more-about-whether-tesla-is-unionized-over-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Slams Joe Biden, Says President &#8216;Cares A Lot More About Whether Tesla Is Unionized&#8217; Over EV Maker&#8217;s Environmental Impact</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

SPDR S&P Oil & Gas Equipment & Services ETF

OPEC+ Likely To Extend Production Cuts Amid Rising Summer Demand: Report

Patterson-UTI Energy, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PTEN#NASDAQ">PTEN</a>) disclosed that its subsidiary, Patterson-UTI International Holdings, Inc., inked a non-binding&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/ac38781395/patterson-uti-signs-term-sheet-to-partner-with-adnoc-drilling-in-the-uae" rel="noreferrer noopener">term sheet with ADNOC Drilling</a>.
As per the deal, Patterson-UTI expects to hold a minority equity interest in Turnwell Industries LLC OPC, which was recently formed by ADNOC Drilling.&nbsp;
Patterson-UTI projects that Schlumberger Middle East SA will also hold a minority equity interest in Turnwell,&nbsp;which won&nbsp;a $1.7 billion contract to drill and complete 144 unconventional wells for ADNOC in UAE. Schlumberger Middle East SA is a subsidiary of&nbsp;Schlumberger N.V.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>).
In exchange for the minority equity interest, Patterson-UTI plans to offer drilling, completion, and other oilfield service expertise to Turnwell and a limited cash contribution to fund the portion of working capital.&nbsp;
Andy Hendricks, Patterson-UTI&#8217;s Chief Executive&nbsp;Officer,&nbsp;said, &#8220;We are pleased that ADNOC Drilling recognizes Patterson-UTI as a premier drilling and completions company and technology leader, and we look forward to reaching an agreement to bring our expertise to the initial phase of this groundbreaking project.&#8221;&nbsp;
&#8220;I am excited about this potential opportunity to allow Patterson-UTI to grow our presence in the Middle East&nbsp;in a&nbsp;capital efficient&nbsp;manner, as we do not expect&nbsp;to initially contribute any capital equipment.&nbsp;We also do not expect this opportunity to change our previously announced capital expenditure budget or impact our expectation to return at least $400 million to shareholders in 2024 through dividends and share repurchases.&#8221;
This month, the company&nbsp;reported&nbsp;an average of 116 drilling rigs operating&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/ac38656746/patterson-uti-reports-drilling-activity-for-april-2024" rel="noreferrer noopener">in the United States for&nbsp;April 2024</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Energy ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCE#NASDAQ">PSCE</a>) and&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>).
Price Action: PTEN shares closed lower by 2.42% at $10.89 on Friday.
Photo via Shutterstock

PSCE

Patterson-UTI Drills Into Middle East With ADNOC Partnership

ChampionX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHX#NASDAQ">CHX</a>) shares are trading higher, while Schlumberger Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) shares are down after the Texas-based companies announced <a href="https://www.benzinga.com/pressreleases/24/04/g38042380/slb-announces-agreement-to-acquire-championx-in-an-all-stock-transaction" target="_blank" rel="noreferrer noopener">an all-stock deal</a>.
What Happened: Schlumberger will acquire ChampionX, and the shareholders will receive 0.735 shares of Schlumberger in exchange for each ChampionX share. 
ChampionX shareholders will own approximately 9% of Schlumberger&#8217;s common shares once the deal closes.
Post closure, Schlumberger expects to realize annual pretax synergies of around $400 million within the first three years through revenue growth and cost savings. 
The transaction is projected to close before 2024, subject to shareholder and regulatory approval. 
Shareholder Return: The company disclosed that it will return $7 billion to shareholders&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">over the next two years</a>.&nbsp;
Schlumberger will increase its shareholder returns for 2024 to a target of $3 billion and project returns of $4 billion for 2025.&nbsp;
Olivier Le Peuch, SLB&#8217;s chief executive officer, said, &#8220;Our core strategy remains centered on meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale and digitalization in our core oil and gas business. This acquisition will expand SLB&#8217;s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy,&#8221; 
As of Dec. 31, 2023, Schlumberger&#8217;s cash and short-term <a href="https://www.benzinga.com/pressreleases/24/01/b36692786/slb-announces-fourth-quarter-and-full-year-2023-results-and-raises-quarterly-dividend-by-10" target="_blank" rel="noreferrer noopener">investments stood at $3.99 billion</a>.
Investors can gain exposure to ChampionX and Schlumberger via&nbsp;Invesco Oil &amp; Gas Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXJ#NYSE">PXJ</a>),&nbsp;VanEck Oil Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>), and&nbsp;IShares U.S. Oil Equipment &amp; Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEZ#NYSE">IEZ</a>).
Price Action: CHX shares are up 8.45% at $38.40 and SLB is down 2.68% at $53.74 on the last check Tuesday.

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