Shares of Baker Hughes (NYSE: BKR) rose an impressive 33% in April, according to data provided by S&P Global Market Intelligence. Halliburton (NYSE: HAL) jumped an even more incredible 53% during the month. And the value of Core Laboratories' (NYSE: CLB) stock increased by an astounding 90%. But even after these large advances, Baker Hughes is still down 46% for the year. Halliburton is off by 60%. And Core Labs is lower by 53%. There's a lot going on in the energy sector, and the turmoil is not nearly close to being over, especially for energy services companies.
The big story in the oil and natural gas space is that supply has swamped demand. A combination of factors created this situation. For example, the excess supply has its roots in the long rise of U.S. onshore oil output. That output upended the normal functioning of the global energy markets, with OPEC trying to play referee to accommodate the new supply without a major price slump.
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Source: Motley Fool
(May 5, 2020 - 3:35 PM EDT)
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