BlackRock, the world's largest asset manager, is bullish on Schlumberger, the world's largest provider of oilfield services, as the money manager sees demand for oil outpacing supply, providing a catalyst to companies such as Schlumberger that provide rig and field services.
Oilfield services companies such as Schlumberger make up four of the top 10 holdings of BlackRock's $6 billion BGF World Energy Fund, according to Bloomberg News. Schlumberger (SLB) is the fund's third-largest holding. National Oilwell Varco (NOV) and Halliburton (HAL), the world's second-largest provider of oilfield services, are the fund's fourth- and fifth-largest holdings, respectively, Bloomberg reported.
At the end of July, BGF World Energy's top two holdings were BP (BP), Europe's second-largest oil company, and Anadarko Petroleum (APC), the second-largest U.S. independent oil and natural gas producer. Occidental Petroleum (OXY), the fourth-largest U.S. oil company, is also found among the fund's top-10 holdings, Bloomberg reported.
Year-to-date, shares of Schlumberger are down 7.32% while rival Halliburton is up about 10%. Shares of Texas-based National Oilwell Varco are off about 1%.