Thursday, April 7, 2011

Halliburton (HAL) (SLB) (BHI) Drop on Rising Crude Supply

Shares of Halliburton (NYSE:HAL), Schlumberger Ltd. (NYSE:SLB) and Baker Hughes (NYSE:BHI) took a hit Wednesday on news from the Energy Information Administration said U.S. crude supplies grew more than expected last week, rising by 2 million barrels.

Expectations from analysts is that crude supply would rise by 1.3 million barrels. As the price of oil remains high, gasoline demand has started to drop, last week by 112,000 barrels a day.

In response to the drop in value of the U.S. dollar, oil prices surged past $109 a barrel at its highest point on Wednesday.

Baker Hughes closed Wednesday at $71.22, falling $1.78, or 2.44 percent. Schlumberger Ltd. closed at $91,94, losing $0.93, or 1.00 percent. Halliburton ended the session at $48.41, dropping $1.32, or 2.65 percent.

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