Oil prices are surging, but oilfield services remain under pressure as the Iran conflict has not triggered a new drilling cycle
📌 Brent has climbed more than 50% since late February, but that rally has not translated into new drilling demand as producers remain cautious amid security risks and heavy infrastructure disruption across the Middle East.
🔎 The real operating picture still looks pressured, with offshore rigs in the Gulf falling sharply from 118 to 72, while difficult transit through Hormuz is pushing up logistics and insurance costs and delaying project timelines.
⚠️ That leaves oilfield service firms in a tight spot, facing both rising operating costs and weaker Middle East revenue. SLB has already warned of softer Q1 results, while Halliburton and Baker Hughes are also being watched closely due to their high regional exposure.
💡 The more constructive angle is that energy infrastructure repair demand could rise strongly later on, especially in Qatar and across the Gulf. For now, though, the market is still pricing in one key reality: high oil prices alone are not enough to restart a new drilling investment cycle.