Rising oil prices can only be good news for the demand for drilling and other services that support the exploration for new energy sources. That fact is reflected in higher stock prices for oil services companies which have outperformed the broader market in recent months.
Some analysts point to over production as a driver of lower crude prices. The International Energy Agency reports that OPEC has increased production by 330,000 barrels a day since April as some members ignore quotas to generate additional revenue to help cope with the recession.
Oil services giant Schlumberger annouced Q2 earnings on Friday that exceeded analyst expectations and saw the stock price jump nearly 4% on the day. Second quarter revenue climbed 20 percent to $6.75 billion, led by gains in Latin America, Africa and Europe.
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