Will Bears Rule Halliburton Stock Amid Covid Scare?

Will Bears Rule Halliburton Stock Amid Covid Scare?

After concerns of lower oil demand, high inflation in the U. S., and slow growth in rig count numbers, the benchmark oil prices declined further. The new coronavirus variant has again brought the global economy on an uncertain path with some countries restricting international travel and others extending the ban over fears of another infectious wave. The shares of Halliburton (NYSE: HAL) currently trade at pre-Covid levels fairly in-line with benchmark oil prices, which have also touched the pre-pandemic mark. Per Baker Hughes BHI , U. S. rig count figures in November were 30% lower over the levels observed in 2019, as upstream companies continue to maintain a prudent capital investment plan in light of uncertain demand environment. Thus, Trefis believes that HAL stock is likely to observe a correction. We highlight the historical trends in revenues, earnings, and stock price in an interactive dashboard analysis on Halliburton Valuation. Assisted by high benchmark prices, rig count numbers in the U. S. have observed a strong uptick as the commercial crude oil inventories continue to decline. Per EIA, production in the U. S., OPEC+ nations, and other regions is likely to outpace demand in the coming quarters. Thus, oil field service