"West Texas Intermediate crude has declined to $58 per barrel, down 24% over the past year. This sustained weakness below the critical $70 threshold is forcing operators to cut exploration budgets, directly reducing demand for the drilling services and equipment that OIH holdings provide. The impact on earnings has been severe. Halliburton ( NYSE:HAL) reported a 97% earnings decline in Q3 2025 as drilling activity contracted, though the company preserved its 13% operating margin by maintaining pricing discipline and cost controls even as revenue fell."
"The next five days bring a concentrated wave of earnings catalysts for OIH investors. Halliburton reported this morning, followed by Schlumberger ( NYSE:SLB) on January 23 and Baker Hughes ( NASDAQ:BKR) on January 26. These three companies represent the fund's largest positions, with Schlumberger alone accounting for 21% of portfolio weight. The guidance these companies provide will likely set the ETF's direction for the coming quarter, making this week's earnings commentary critical for investors to monitor."
Oil services stocks have climbed sharply since late December, with the VanEck Oil Services ETF up roughly 18% year-to-date. West Texas Intermediate crude has fallen to $58 per barrel, down 24% over the past year, keeping prices below the critical $70 threshold and forcing operators to cut exploration budgets. Reduced exploration spending directly lowers demand for drilling services and equipment. Halliburton reported a 97% earnings decline in Q3 2025 while preserving a 13% operating margin through pricing discipline and cost controls. Weekly EIA inventories and monthly production data provide early supply-demand signals. Near-term ETF direction depends on upcoming earnings from the fund's largest holdings.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]