Why Schlumberger Stock Fell 54% in the First Half of 2020
The shares of Schlumberger (NYSE: SLB) fell by 54% between Jan. 1 and June 30, according to data from S&P Global Market Intelligence. Most of that decline took place in the first quarter, and the stock has actually recovered some of the ground it lost -- at one point, it was down nearly 70%.
The big story here is the collapse in the price of crude oil: Schlumberger provides a broad suite of services to the energy sector. The global supply-and-demand dynamic for oil was already a little out of balance when the year began, but the economic shutdowns imposed to slow the spread of COVID-19 led to a massive oversupply situation. Oil prices tumbled to historic lows, with futures prices falling below zero at one point.
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Source Fool.com
