Monday, March 28, 2011

Why Some Huge Oil Companies Are Surging Today Despite Sliding Oil Prices (SLB, HAL, BHI)

Stocks are generally higher, but some big oil names are among the standout winners. That might seem odd given that oil is slipping a bit.

Specifically, oil service companies are on fire.

The culprit, as noted earlier, is a report form BofA/Merrill announcing that these companies would be the big winner in the upheaval in Saudi Arabia. The gist is that as the Saudi King seeks to mollify the rioters, he'll have to crank up oil production big time to pay for all of the new social benefits.

That means more business and more pricing power for the likes of Slumberger, Weatherford, Baker Hughes, and Weatherford.

Click here for more on the report >

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