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Baker Hughes Jumps as Barclays Optimistic About Oil Services

Baker Hughes was upgraded to overweight from equal weight at Barclays. 'The time to own oilfield services is now,' the investment firm says.
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Shares of Baker Hughes  (BKR) - Get Baker Hughes Company Report jumped on Monday after Barclays analysts upgraded the stock to overweight from equal weight on a bullish outlook for global oil markets. 

"The time to own [oilfield services] is now," Analyst J. David Anderson said, according to Bloomberg.

Anderson raised his price target on the Houston company to $28 a share from $25.

At last check Baker Hughes was up 8.8% to $21.85.

Anderson upgraded his industry view on the oilfield services and equipment sector to positive. 

The sector will "not only recover by 2023, but upstream spending continues to expand out to 2025 on the back of increasing global demand," he said. 

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International benchmark Brent crude prices at last check were up 1% to $67.44 a barrel while West Texas crude was up 1.2% to $64.34. 

Gas prices have tripled since hitting a low of $21.44 in April during the early height of the COVID-19 pandemic. 

Iraq, the second largest oil producer in OPEC, said Monday that crude prices would probably stay around $65 a barrel in the coming months, Yahoo Finance reported. 

OPEC will continue to try to keep oil prices "within normal averages,” Oil Minister Ihsan Abdul Jabbar told reporters in Baghdad, according to Yahoo Finance. “There is no concern about a drop in prices."

Last week, General Electric  (GE) - Get General Electric Company Report disclosed in a Securities and Exchange Commission filing Friday that its share of Baker Hughes stock has dropped to 25.7%, or 267.75 million shares, from 30.1%, or 311.43 million shares, at the end of January.

That could mean the Boston industrial group garnered almost $1 billion for the shares it sold during the period.