Dahlman Rose & Co. Gauges Oil Demand; Comments On Schlumberger And Baker Hughes

After news of 9.6% 3Q10 economic growth, rising inflation, and interest rate hikes from China, Dahlman Rose & Co. said that it gauged where Chinese and Global oil demand estimates lie vs. GDP estimates and found that IEA estimates proved conservative vs. recent history. “Schlumberger's SLB discussion of expanding international earnings, driven by high-end products and growing offshore activity, read through positively for Baker Hughes, Inc. BHI, historically well positioned in offshore markets and high quality products,” Dahlman Rose & Co. writes. “Since BHI shares have lagged since its 2Q10 earnings release and investors may remain reticent to trade in front of earnings, the stage may be set for a rally.” Baker Hughes currently trades for $47.27; Schlumberger trades for $69.80.