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China said it is ready to "continuously" boost strategic coordination with Moscow. Chinese Foreign Minister Wang Yi told Russian counterpart Sergey La...
U.S. oilfield service firms are facing significant challenges following President Donald Trump’s recent tariff announcement, which is disrupting supply chains and contributing to a decline in oil prices.
Analysts predict that the combined effects of the tariffs and lower oil prices could lead to a drop in drilling activity, placing additional pressure on major oil services companies.
Financial services firm Morningstar downgraded its fair value estimates for the three largest oilfield service firms—SLB, Halliburton, and Baker Hughes—by 3-6% following the announcement of the tariffs. The firm warned that these companies could see a 2-3% decline in oilfield revenue in 2025. For each dollar lost in revenue, Morningstar estimates these companies could lose between $1.25 and $1.35 in operating profit.
The tariffs, which are expected to impact crucial components such as pipes, valve fittings, and sucker rods, are particularly concerning for these firms, which rely on multinational sourcing strategies, according to Rystad Energy's Ryan Hassler.
Shares of the major oilfield service firms took a hit on Friday. SLB, the world’s largest oil services company, saw its stock drop by 12%, reaching its lowest point since September 2022. Halliburton’s stock fell by 10%, while Baker Hughes’ shares tumbled by 11%.
In addition to the tariff challenges, oil prices also took a sharp dive after China— the world’s largest crude oil importer—escalated tariffs on U.S. goods. This move sparked concerns about a global recession and a subsequent dip in oil demand. Crude oil futures were down more than 8% in afternoon trading, with global benchmark Brent crude falling to $64.03 per barrel and U.S. West Texas Intermediate crude (WTI) hitting $66.90.
If WTI remains in the $60 per barrel range for an extended period, it could lead to reduced activity in the U.S. shale sector by the second half of the year, Rystad’s Hassler warned. Investment bank JP Morgan has raised the probability of a global recession by the end of the year to 60%, up from 40% previously.
"The curtain appears to be falling on global trade as we knew it," said Tamas Varga, an analyst at PVM Oil Associates. "The threat of recession is front of mind, and investors are retreating from risk assets such as oil and equities."
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
Archaeologists have uncovered a 3,500-year-old city in northern Peru that likely served as a key trade hub connecting ancient coastal, Andean, and Amazonian cultures.
A deadly mass shooting early on Monday (7 July) in Philadelphia's Grays Ferry neighbourhood left three men dead and nine others wounded, including teenagers, as more than 100 shots were fired.
On July 4, Azerbaijani President Ilham Aliyev met with Turkish President Recep Tayyip Erdoğan in Khankendi, reaffirming the deep-rooted alliance between the two nations.
France recorded over 100 drowning deaths in just one month — a 58% rise from last year — as unusually high temperatures drove more people to water, public health officials say.
Germany’s public debt is projected to climb from 62.5% to 74% of GDP by 2030, driven by record defence and infrastructure spending, according to a report by the European rating agency Scope.
Migration offset natural decline for the fourth consecutive year, pushing the European Union’s population to an historic high of 450.4 million in 2024, according to Eurostat figures released on Friday.
The global oil market may be tighter than headline supply-demand figures suggest, the International Energy Agency (IEA) said Friday, citing rising refinery activity and seasonal summer demand as key drivers of short-term market pressure.
China’s exports are expected to have grown 5% in June as manufacturers hurried goods abroad ahead of a 12 August deadline that could see the U.S. restore punitive tariffs, a Reuters survey of economists indicates.
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