Oil prices have been stuck in a range of about $65 to $80 for months, but several oil services stocks have recently been hitting new 52-week highs. Why are oil services stocks doing so well and how can investors play the rise? Kurt Hallead, oil services analyst at RBC Capital Markets, shared his outlook.
“You came off an extreme low last year when oil prices collapsed around $35,” Hallead told CNBC.
“The rally that took oil back into the $70 to $80 range is giving the oil companies a significantly greater confidence.”
Oil companies are preparing to spend money again, which will ultimately benefit the stocks, he said.
Hallead said Schlumberger is among his top picks. (See how SLB shares compare to rivals, below.)
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No immediate information was available for Hallead or his firm.