Oil Services Should Get Ready for a Recession, Rystad Warns - Bloomberg:
The oil services sector will contract in 2020 as producers cut spending in response to lower crude prices, ending three years of growth, according to Rystad Energy.
The market will shrink 4% to $621 billion next year from $647 billion in 2019, the research company said Wednesday in a statement.
The outlook is based on a Brent oil price of $60 a barrel, close to where it’s currently trading. That’s in “stark contrast” to Rystad’s previous view, which based on an estimate for about $70 oil in 2020 and saw services expanding 2%, said Audun Martinsen, its head of oilfield services research.
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