Baker Hughes Warns Oilfield Spending May Slow Amid Middle East Uncertainty

Baker Hughes Company (BKR), a critical equipment and services provider for the oil and gas industry, has warned of a potential slowdown in capital expenditure within the sector this year.

During the company's Q2 earnings call, Chairman and CEO Lorenzo Simonelli said that customers remained "focused on maximizing production from existing assets while preserving flexibility to respond to evolving market conditions" due to repeated flare-ups between the US and Iran in the Middle East.

Simonelli noted that the company expects year-over-year growth across Latin America, offshore Africa, and North America, but this is expected to be offset by slower growth in Europe and the Middle East.

CFO Ahmed Moghal, however, said that he expects the impact of the conflict in the Middle East to be minimal, adding that the supply dip would be offset by other parts of the world, such as Brazil, Mexico and North America.

The company said that it was also relying on resilience in other parts of the industry, such as LNG infrastructure and power grid upgrades, which are helping cushion a slowdown in oilfield contracts.

US Oil Update: Futures Retreat as Middle East, Black Sea Supply Risks Recede

Crude futures plunged in after-hours trading on Monday, pulling back from a multi-session high, as immediate supply threats across key Middle Eastern and Black Sea crude exporting markets began to ease.Front-month West Texas Intermediate crude futures retreated 8.3% to $81.88 per barrel, while Brent futures plunged by 9% to $87.75/bbl.EBW Analytics strategists said on Monday that the market could return to an oversupplied balance if hostilities continue to ease, though risks remain elevated given the potential for the conflict to broaden.The US has held off on new military strikes against Iranian targets since Friday, following 13 straight nights of attacks aimed at degrading Tehran's ability to disrupt commercial shipping in the Strait of Hormuz.Iran, in response, reportedly signaled that it would stop carrying out attacks on its Gulf neighbors as long as the US also refrains from striking, as Tehran held talks with Oman over the Strait of Hormuz.On Monday, the US Central Command said that Washington's ongoing blockade against Iran has redirected 17 commercial vessels, disabled two, and boarded two to enforce compliance.Earlier on Monday, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that while "it's possible that mediators share messages from the US side about current developments," no formal peace negotiations between Iran and the US are currently taking place.He said talks between Tehran and Muscat have no connection whatsoever with the US and are ongoing.However, Saudi Arabia's Ministry of Defense on Monday intercepted drones from Iraq and Yemen's Houthis targeting its oil facilities.Soojin Kim, research analyst at MUFG, said that although the pause in US military action has eased immediate supply fears, constrained maritime traffic across key export routes suggests geopolitical risk remains elevated.The defense ministry said in a social media post that the Gulf state's air defenses intercepted and destroyed several drones that targeted petroleum facilities in the country's Eastern Province and Riyadh region.On Monday, the Houthis also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the Gulf state's drones.Yahya Saree, the Houthis' spokesperson, said that several targets in the supply and transport of crude oil from eastern Saudi Arabia to Yanbu were struck by several drones.Saudi Arabia has re-routed its crude output to Yanbu via its east-west pipeline to get around Iranian attacks on shipping in the Hormuz.Meanwhile, traffic through the Hormuz, through which 20% of the world's oil and liquefied natural gas supplies flowed before the conflict, remains restricted, with the latest shipping data showing only 29 confirmed crossings between July 24 and 26.Bab el-Mandeb, by comparison, recorded 100 verified crossings, with 51 vessels entering the Red Sea and 49 exiting.

Saudi Crude Transit Through Bab el-Mandeb Drops Sharply After Houthi Attacks, Kpler Says

Saudi crude exports continue to move through the Bab el-Mandeb Strait despite a sharp drop in transit volumes following Houthi attacks, Kpler said in a Monday note.Before the July 22 attacks, crude cargoes loaded at Saudi Arabia's west coast averaged about 3 million barrels per day through the strait, reflecting regular shipments from Yanbu to Asia.Kpler said the attacks marked an escalation in Houthi targeting of Saudi-linked shipping in the Red Sea.Since July 22, only six Saudi-loaded crude tankers have crossed Bab el-Mandeb, with transit volumes averaging about 1.5 million b/d over the six days after the attacks.The transit volumes have dropped by almost 50%, although Saudi crude exports have not stopped, according to Kpler.Kpler said it has not confirmed any suspension of Saudi crude loadings from Yanbu or vessel crossings through the strait.The firm said the shipping corridor remains open even as traffic continues at a slower pace.

Baker Hughes Warns Oilfield Spending May Slow Amid Middle East Uncertainty

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Oil & Energy14h ago
US Oil Update: Futures Retreat as Middle East, Black Sea Supply Risks Recede
Crude futures plunged in after-hours trading on Monday, pulling back from a multi-session high, as immediate supply threats across key Middle Eastern and Black Sea crude exporting markets began to ease.Front-month West Texas Intermediate crude futures retreated 8.3% to $81.88 per barrel, while Brent futures plunged by 9% to $87.75/bbl.EBW Analytics strategists said on Monday that the market could return to an oversupplied balance if hostilities continue to ease, though risks remain elevated given the potential for the conflict to broaden.The US has held off on new military strikes against Iranian targets since Friday, following 13 straight nights of attacks aimed at degrading Tehran's ability to disrupt commercial shipping in the Strait of Hormuz.Iran, in response, reportedly signaled that it would stop carrying out attacks on its Gulf neighbors as long as the US also refrains from striking, as Tehran held talks with Oman over the Strait of Hormuz.On Monday, the US Central Command said that Washington's ongoing blockade against Iran has redirected 17 commercial vessels, disabled two, and boarded two to enforce compliance.Earlier on Monday, Iran's Foreign Ministry spokesman, Esmail Baghaei, said that while "it's possible that mediators share messages from the US side about current developments," no formal peace negotiations between Iran and the US are currently taking place.He said talks between Tehran and Muscat have no connection whatsoever with the US and are ongoing.However, Saudi Arabia's Ministry of Defense on Monday intercepted drones from Iraq and Yemen's Houthis targeting its oil facilities.Soojin Kim, research analyst at MUFG, said that although the pause in US military action has eased immediate supply fears, constrained maritime traffic across key export routes suggests geopolitical risk remains elevated.The defense ministry said in a social media post that the Gulf state's air defenses intercepted and destroyed several drones that targeted petroleum facilities in the country's Eastern Province and Riyadh region.On Monday, the Houthis also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the Gulf state's drones.Yahya Saree, the Houthis' spokesperson, said that several targets in the supply and transport of crude oil from eastern Saudi Arabia to Yanbu were struck by several drones.Saudi Arabia has re-routed its crude output to Yanbu via its east-west pipeline to get around Iranian attacks on shipping in the Hormuz.Meanwhile, traffic through the Hormuz, through which 20% of the world's oil and liquefied natural gas supplies flowed before the conflict, remains restricted, with the latest shipping data showing only 29 confirmed crossings between July 24 and 26.Bab el-Mandeb, by comparison, recorded 100 verified crossings, with 51 vessels entering the Red Sea and 49 exiting.

Oil & Energy14h ago
Attack Hits Khor Mor, Northern Iraq's Largest Khor Mor Gas Field, Iran State Media Says

Oil & Energy15h ago
Saudi Crude Transit Through Bab el-Mandeb Drops Sharply After Houthi Attacks, Kpler Says
Saudi crude exports continue to move through the Bab el-Mandeb Strait despite a sharp drop in transit volumes following Houthi attacks, Kpler said in a Monday note.Before the July 22 attacks, crude cargoes loaded at Saudi Arabia's west coast averaged about 3 million barrels per day through the strait, reflecting regular shipments from Yanbu to Asia.Kpler said the attacks marked an escalation in Houthi targeting of Saudi-linked shipping in the Red Sea.Since July 22, only six Saudi-loaded crude tankers have crossed Bab el-Mandeb, with transit volumes averaging about 1.5 million b/d over the six days after the attacks.The transit volumes have dropped by almost 50%, although Saudi crude exports have not stopped, according to Kpler.Kpler said it has not confirmed any suspension of Saudi crude loadings from Yanbu or vessel crossings through the strait.The firm said the shipping corridor remains open even as traffic continues at a slower pace.