Oil prices are poised to rise as a number of positive trends take shape in the market, which is now balanced after years of oversupply, according to Schlumberger, the world's largest publicly traded oilfield services company.
Schlumberger Chairman and CEO Paal Kibsgaard sounded the positive note after his company announced its third-quarter earnings rose by 65 percent, excluding charges related to a major acquisition. The company also saw quarterly revenue jump 13 percent year over year, driven by strong growth in the U.S. shale oil patch, as well as in Russia, the North Sea and Asia.
Looking at the global picture, Kibsgaard said the prospect of rising oil prices has been bolstered by falling crude stockpiles around the world, as well as several other positive signals.
"A continuation of these market trends, combined with further steady draws in global oil inventories is now creating the required foundation for further upward movement in oil prices and subsequent growth in global E&P investment," Kibsgaard said in a statement, referring to oil exploration and production.