Reuters Insider - Inside the News: Schlumberger Profit Seen Bullish for Oil

First Hydrogen

13/06/2016 11:01

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        Schlumberger, the world's largest oilfield        
                     services company, posted a higher-than-expected   
                     profit and Reuters Correspondent Matt Daily says  
                     with rising fuel costs and demand, look for it to 
                     go higher.                                        
 
 
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Transcript (May be auto-generated)

                 Let's go Inside the News at noon. It's a bright day for the blue chips with the 
Dow getting a lift particularly from GE which is having its best day in eight 
months. Stocks getting close to 86% on volume that's already double its daily 
average from the past six weeks. It's the biggest contributor to the Dow's third
of a percent gain helping it outperform small and midcaps for a change. Both of 
them are lower for a third day. Schlumberger posted a higher than expected 
profit boosted by strong demand in North America. The top oilfield services 
company in the world also said it expected brisk activity ahead. Reuters 
Correspondent Matt Daily joins us now with more. So, what does this say about 
the rest of this industry, oil and gas overall? Well, it's a positive sign Dan. 
The oil companies respond to oil prices and prices have been high there, around 
$90. That means more spending on new projects and since Schlumberger is the 
biggest in the world, they'll be reaching out and Schlumberger indicates that 
revenues are gonna be rising this year. Alright. Thanks Matt. Speaking of crude,
after failing to regain the critical $90 level, oil futures are about a half a 
percent lower in the day and dropping below the $89 mark. Reuters Commodities 
Specialist Chris Henwood says $88 and then $86, $85 are the support levels to 
watch. He adds this is a follow through from post EIA market weakness on 
Wednesday. Energy Secretary Steven Chu says he is confident the US can't compete
with China on clean energy. Speaking to Insider, he added energy will be a part 
of President Obama's State of the Union Address next week. He did warn though 
that the US can't be complacent on developing green tech. China has for example 
identified energy the way it produces energy, its use of energy to use in the 
most efficient way possible on a very, very critical path because they see it is
a key to their future economic prosperity; not five or 10 years from today but 
today, tomorrow and in the coming years. 

Brazil's Central Bank sold all of the reverse currency swap contracts on offer 
today in the latest bid to curb the surging Real. In its second auction of the 
year, the bank sold 20,000 contracts worth nearly a billion Dollars. Meanwhile, 
Fitch is weighing in on the Brazilian economy, saying its growth is not just 
cyclical. Coming up at 12:15, we interview Stephen Roach, Non-Executive Chairman
of Morgan Stanley Asia on the risk of a trade war between the US and China. And 
at 1PM, we will analyze GE CEO Immelt's new role as President Obama's Economy 
Czar. I'm Dan Burns. This is Reuters Insider