diablo loco said:
someone on here talked me out of the oilfield service etf OIH a while back. I don't know the sector that well or feel comfortable buying SLB or HAL at the moment. Sure seems to be a lot of blood in the street though. Same on natural gas. Is anyone bullish on service or NG right now? Seems like the truck should start backing up.
Service companies always lag behind E&P companies. E&P are still getting hammered. Until you see the E&P companies moving in the right direction, I would hold off on the service companies. E&P companies are cutting their budgets because they need to get their cashflows in order. Cuts are hitting the drilling & completion sides. Which correlates to the service side of the business. I'm still on the sidelines for both E&P & service companies but I'm itching to get back in, but not at the moment. Just need a middle east conflict to dust up and then maybe we could see oil prices jump but I'm not convinced that Trump wouldn't open the strategic reserves to help keep prices contained and his tweets to the Saudi's to control prices. JMHO