BUZZ-Oilfield services firms tumble after Aramco cuts maximum capacity target

SAUDI ARAMCO -0.33%

SAUDI ARAMCO

2222.SA

29.95

-0.33%

Updates

** Shares of oilfield services companies fall in early trading

** Schlumberger SLB.N falls 9.4%, Halliburton HAL.N drops 4.7% and Baker Hughes BKR.N slips 4.1%

** 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

** Up to last close, SLB shares dropped 6.6% in the past 12 months, HAL shed 8.2%, and BKR lost 4%


(Reporting by Medha Singh)

((medha.singh@thomsonreuters.com))

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