As we peer into 2025, three intertwined themes provide a window into where we’re headed, especially considering how factors like job growth, inflation, and energy prices are interacting with geopolitical uncertainties: U.S. elections, Fed’s meeting and China’s economic story. This update tends to provide some perspective in regards to the future direction of U.S. economy and oil markets. Also gives insights into the U.S. frac’ing industry.
1. MMV: What does the latest job report mean for the U.S. and Global Economy? – PREMIUM
The October jobs report showed a sharp decline in job creation, with only 12,000 jobs added—a staggering drop from September’s 223,000. The Federal Reserve’s upcoming meeting will add another layer of complexity. Markets are anticipating a quarter-point rate cut, a move that could help stimulate growth by easing borrowing costs. The Chicago Business Barometer, also known as the Chicago PMI, dropped to 41.6 in October, well below the break-even level of 50 and missing the forecast of 46.8. What happens next?
Read the article above to learn about this in more detail.
2. MST: Data points toward a soft landing…but is that it? – PREMIUM
China’s economic indicators show slight optimism, as manufacturing posted expansion for the first time in five months, with the PMI edging up to 50.1 in October, signaling recovery from previous contractions. The latest U.S. data shows mixed signals, with consumer spending jumping 3.7% — the strongest pace since early 2023, driven by robust demand and rising wages. However, manufacturing is struggling, with the ISM Manufacturing PMI dropping to 46.5 in October from 47.2, marking the seventh month in contraction territory.
3. ProFrac Holding: Q3 Takeaways – PREMIUM
In Q4, ProFrac (ACDC) expects to see its pricing and activity in the Stimulation Services segment deteriorate. However, additional integrated frac spread deployments and increased demand for electric and Tier 4 dual fuel (or DGB) frac spreads can lead to a recovery in Q1 2025. Read more of this brilliant article by our analyst Avik Chowdhury to learn regarding company’s cash flows and future plans.
4. SLB’s Perspective: Q3 TAKE THREE – PREMIUM
Digital sales have recently boosted SLB’s performance as E&P customers increase their investments in digital technology to reduce cycle times and enhance productivity to lower costs. This also allows for high-margin growth. Recently, it signed an agreement to sell its interests in the Palliser APS project in Canada. But what is the company’s outlook for 2025? Does it expect more revenue growth? What about the operational expenses? Read the full article to find out more.
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