Like many industries, the oil services industry was hit hard by the pandemic, which was compounded by an already struggling sector. With commuter life coming to a halt with lockdowns in Q1 2020, and workers using less transportation, oil and gas prices plummeted.
However, oil prices have rebounded strongly in 2021, and with that, oil exploration and production have reversed their course as well. Additionally, there’s been an energy demand surge, which has also given a boost to the oil services industry.
This upward trend can be seen in the two indices — the MVIS US Listed Oil Services 25 Index (ticker: MVOIH) and the MVIS Global Unconventional Oil & Gas Index (ticker: MVFRAK).
MVIS US Listed Oil Services 25 Index (ticker: MVOIH) tracks the performance of the largest and most liquid US-listed companies that derive at least 50% of their revenues from oil services — containing only companies which are engaged primarily in oil equipment, oil services or oil drilling. Boosted by exploration and production companies, as of Tuesday, June 15, 2021, MVOIH was up roughly 50% YTD. If you go back two months prior to that, looking at the beginning of November, the index had been up roughly 150%.
MVIS Global Unconventional Oil & Gas Index (ticker: MVFRAK), which is a pure-play index that tracks the performance of the largest and most liquid companies in the unconventional oil and gas segment, was up more than 70% YTD as of Tuesday, 15 June 2021. With traveling becoming more normalized, for business and for pleasure, these upward trends look to continue.
MVIS US Listed Oil Services 25 Index and
MVIS Global Unconventional Oil & Gas Index
31/05/2020-15/06/2021
Source: MV Index Solutions. All values are rebased to 1,000. Data as of 15 June 2021.
Get the latest news & insights from MarketVector
Get the newsletterRelated:
