Pain for Oil Producers, Service Providers
Oil producers and oilfield service providers down as U.S. crude oil prices fell below $42 a barrel after new build in U.S. stockpiles put global glut back in focus.
Producer and Service Notes:
- U.S. crude last down 16 cents at $42.07 a barrel. Brent futures were trading at $49.33 barrel
- Oil support services down 1-2 pct, BG, Royal Dutch Shell (RYDAF) down 0.4-0.8 pct while BP and Tullow Oil (TUWLF) fall 1.1 pct
- Weir Group top loser on the FTSE-100, down 1.5 pct, after Liberum cuts PT and keeps its sell rating
- Liberum analyst Jack O'Brien says co's high-margin aftermarket rev from its minerals division at risk from further customer deferrals and falling order intake
- Oil services company Petrofac (POFCF) falls 1 pct while Amec Foster Wheeler sheds 1.1 pct
- FTSE 350 Oil & Gas Financial index down about 1 pct, with Hunting leading the decline
- Stoxx 600 Oil & Gas index falls 0.7 pct with Seadrill (SDRL) down 2.7 pct and among the heaviest decliners across major European shares
