SLB Seen Benefiting From Higher Oil Production Investment

According to CNBC, energy trader John Arnold said the underlying supply backdrop for oil was already bullish, while the article argued that refiners are the biggest beneficiaries of the current disruption because crack spreads, or refining margins, have never been wider. It said refiners could continue to post record profits for several years, though their share prices are already at record highs, and noted that oil service companies have rallied but are not yet at all-time highs. The piece said SLB is the largest of those oil service companies and that longer-dated long calls financed by shorter-dated short strangles are the preferred trade.