U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters

U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters:

U.S. oil and gas activity in some of the largest producing regions is declining, led by a weakening oilfield services sector as producers cut spending, according to an energy survey released on Wednesday by the Federal Reserve Bank of Dallas.

The Fed’s energy business activity index fell to negative 7.4 in the third quarter, the worst reading since early 2016. Activity in the services sector slumped by more than 28 points to negative 21.8.

Although oil production rose, service firms reported declines in activity, a sign that companies continue to do more with less. The equipment utilization index fell by 27 points to negative 24 for the quarter, the lowest reading since 2016, according to the report, which surveyed 163 energy firms this month in Texas, southern New Mexico and northern Louisiana.