Oil services stocks have been particularly sensitive to recent swings in oil prices. Some analysts believe that if oil stays under $90 per barrel for an extended time, it could crimp demand for services from companies like Halliburton (HAL). But with oil above $100, even hard-to-reach reserves are worth digging up, so the oil servicers will keep doing lots of business. That, at least is how the thinking goes.
Clearly that logic is proving persuasive today, as oil service stocks are soaring on rising crude prices. Crude futures were recently up $2.91 to $96.96 per barrel.
Halliburton rose 7% in midday trading, Baker-Hughes (BHI) was up 5.7% and Schlumberger (SLB) was up 3.9%.
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