Oil prices are currently trading just below $70 per barrel, much lower than the shut-in prices of existing U.S. wells, which are below $50 per barrel according to the Federal Reserve Bank of Dallas. This environment benefits Phillips 66, a leading refiner with a diversified business across midstream and chemicals, as it can purchase crude at lower costs. Nabors Industries, a provider of drilling technology and services, also stands to gain because the current oil prices, which are much lower than the shut-in prices, are likely supporting exploration and production activities, driving demand for its services. On its first-quarter 2026 earnings call, Nabors said it expects rig day rates in the Lower 48 to rise to the mid-$30,000 range through 2027 from the low-$30,000 range.
Nabors Industries Ltd.Oil prices near $70 support E&P activity, driving demand for Nabors' drilling services; company expects rig day rates to rise.
Phillips 66Lower crude prices benefit Phillips 66 as a refiner by reducing input costs.