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BUZZ-Oilfield services companies slide after Aramco cuts maximum capacity target
SAUDI ARAMCO 2222.SA | 25.04 | +0.64% |
** Shares of oilfield services companies fall premarket
** Schlumberger SLB.N falls 5.6%, Halliburton HAL.N drops 4.3% and Baker Hughes BKR.N slips 3.4%
** Saudi Aramco 2222.SE said it was asked to cut its planned maximum sustainable oil production capacity to 12 million barrels a day (bpd), having raised it to 13 million bpd almost four years ago
** The move did not reflect demand but was simply a directive from the government, a source with direct knowledge of the matter told Reuters
** "It may be to save money. But most likely it implies that it sees no need for this extra oil in the global market," said SEB analyst Bjarne Schieldrop
** SLB, BKR and HAL reported quarterly profits above estimates this month, as strong international demand offset slowing activity in the U.S. shale region
** In the past 12 months, SLB shares dropped 6.6%, HAL shed 8.2%, and BKR lost 4%
(Reporting by Medha Singh)
((medha.singh@thomsonreuters.com))