Oil Prices Soar Above $94: What It Means for Oilfield Service Stocks

Oil prices have been trading above $94 per barrel, driven by ongoing tensions in the Middle East. The U.S. Energy Information Administration (EIA) projects WTI at $84.65 per barrel for this year, higher than last year's price of $65.40.

This favorable pricing environment is expected to continue supporting exploration and production activities, particularly in the Permian Basin, the most prolific basin in the United States.

As a result, upstream players operating in promising resources are likely to benefit from ongoing strength in oil prices. Total crude oil production in the United States is estimated to be 13.83 million barrels per day this year, higher than last year's 13.66 million barrels per day.

Baker Hughes (BKR) and Oceaneering International (OII) are two energy stocks that may be worth considering due to their exposure to the oilfield services market. High oil prices could encourage producers to commit more capital to offshore projects, supporting demand for BKR's oilfield services and OII's subsea robotics and offshore project services.

BKR currently carries a Zacks Rank of 2 (Buy), while OII also has a Zacks Rank of 2. The company is seeing stronger activity and longer contract durations, which could translate into healthier demand for its ROV fleet and offshore project services.