With the price of oil having declined significantly over the last six months, there’s some modestly bullish news for the oilfield services (OFS) sector. Drilling and services pricing declined in November but equipment prices inflected higher. Drilling PPI was +5.4% year-over-year versus +5.9% in October. Machinery and Equipment PPI was +2.5% year-over-year versus +2.3% in October. That’s a positive for the OFS sector as the rate of change in price declines slows down.
