"These companies are so tied to oil prices and falling prices hurt them. They really need greater belief in an $80 dollar or above range, and today's events give more credence to the view that prices are too high based on the actual supply/demand situation, which is unfavorable."
Even though Dubai is a Mideast nation, it is not direct exposure to Dubai that will hurt the oil services sector, as not many of the companies have major businesses in the Mideast state. Rather, it is the broader ripples through the economy as a result of the evolving situation in Dubai that could keep the price of oil trading within a range that will be lower than many had been forecasting, and that potentiality is the worst thing for these companies.
-- Reported by Eric Rosenbaum in New York
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