Shares of US Oilfield Service Providers Slump as Saudi Aramco Drops Plan to Increase Production Capacity

Shares of major oilfield service companies like Schlumberger (SLB), Seadrill (SDRL), Baker Hughes (BKR) and Halliburton (HAL) fell in recent Tuesday trading after multiple media outlets reported oil giant Saudi Aramco shelved its planned increase in maximum oil production capacity by 1 million barrels per day.

Schlumberger was down more than 7%, Seadrill fell 3%, Baker Hughes dropped more than 2%, while Halliburton declined more than 1%.

Saudi Aramco said it received a state directive to keep its maximum sustainable capacity at 12 million barrels per day. It was earlier mandated to increase the capacity to 13 million barrels per day.

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