- Crude oil prices likely will stay subdued throughout H1 2016, Oppenheimer's James Schumm says, noting “record pessimism” on futures exchanges and indications from Saudi Arabia that it is preparing for a protracted period of low prices, but he expects oilfield services stocks to recover in H2.
- Schumm says Halliburton (HAL +0.1%) and Schlumberger (SLB -0.3%) will have an advantage, as their client roster includes the high quality E&P companies whereas smaller oilfield services companies (OIH -0.9%) tend to work for the more marginal players.
- Oppenheimer also recommends Weatherford (WFT -2.9%), Superior Energy Services (SPN -2.4%), Bristow Group (BRS -2.4%) and Era Group (ERA -5%) in the sector.