Weatherford Anticipates Flat Middle East Activity Amid Broader Geopolitical Shifts
Newsquawk ·
Weatherford expects Middle East upstream operations to hover near current levels without factoring in any near-term recovery. Despite normalizing crude exports, activity remains subdued due to falling rig counts, postponed tenders, and ongoing regional disruptions. In broader energy and geopolitical developments, US President Trump urged the U.K. to maximize North Sea drilling. Russian Deputy Prime Minister Novak stated that diesel volumes could fully recover by the end of 2026, while President Putin met with US Envoy Witkoff to discuss a potential summit with Trump. Meanwhile, Iran's Foreign Minister emphasized readiness for diplomacy while maintaining defensive postures amid stalled understandings with Washington. Crude benchmarks edged higher in response to persistent geopolitical uncertainties, whereas spot gold remained stable. Energy markets continue to monitor how regional conflicts, supply adjustments, and diplomatic engagements will influence global commodity flows and upstream investment decisions moving forward.
AI 시장 분석
Weatherford projected that upstream activity in the Middle East will remain at current levels for the time being, with limited recovery. Due to geopolitical conflicts and delayed bidding, the rig count is decreasing and operational disruptions continue. This has increased the likelihood of delayed profitability improvements for energy service providers.
상승 영향
- Crude Oil — As geopolitical uncertainties and operational disruptions continue in the Middle East, concerns over supply disruptions provide support and upward pressure on crude oil benchmark prices.
하락 영향
- Energy — Energy service companies like Weatherford forecast sluggish recovery in Middle East upstream activity, worsening earnings visibility due to declining rig counts and delayed bidding.
DYAX 전담 분석
Geopolitical conflicts and delayed bidding pipelines in the Middle East are slowing the conversion of backlog for energy service companies, acting as a drag on earnings. Even if crude oil exports normalize, approvals for new drilling budgets are being delayed, keeping service prices and utilization rates suppressed for the time being.
The bullish scenario is the resumption of drilling activity through the mitigation of geopolitical risks via diplomatic negotiations, while the bearish scenario is sustained operational disruptions due to prolonged conflict. Investors should monitor earnings guidance from major energy service companies and trends in Middle East rig counts.
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