The energy sector saw a decline on Friday, April 24, 2026, as oil futures fell amidst renewed hopes for diplomatic progress between the United States and Iran. Reports indicated that a U.S. delegation, including Jared Kushner and Steven Witkoff, was en route to Pakistan for potential talks with Iran. Concurrently, Iran's Foreign Minister, Abbas Araghchi, announced his travel to Pakistan, Oman, and Russia, signaling a diplomatic push.
This diplomatic activity contributed to a decrease in oil futures, with New York-traded oil futures falling 1.5% to $94.40 a barrel. Globally traded Brent crude futures, while closing above $105 a barrel, were still down for the day, though they had risen approximately 17% for the week. The prospect of talks comes after a period of significant volatility in oil prices, driven by the ongoing conflict and its impact on the Strait of Hormuz, a critical global shipping route.
In corporate news, SLB (formerly Schlumberger) announced its first-quarter 2026 results, reporting revenue of $8.72 billion, a 3% increase year-on-year. However, GAAP earnings per share (EPS) decreased by 14% year-on-year to $0.50, and adjusted EPS, excluding charges and credits, fell 28% year-on-year to $0.52, matching analyst expectations. SLB's net income attributable to the company was $752 million, a 6% decrease from the prior year. CEO Olivier Le Peuch noted a challenging start to the year, attributing the decline in profit to widespread disruptions across the Middle East. These disruptions led to a $200 million revenue shortfall and impacted adjusted EBITDA margins, which contracted by 346 basis points to 20.3%. Despite these headwinds, SLB reported strong growth in its Digital and Production Systems segments, with Digital revenue increasing 9% year-on-year to $640 million and Production Systems revenue rising 23% due to the ChampionX acquisition.
Meanwhile, rival oilfield services provider Halliburton saw weekly gains, citing positive indications of increased activity in the U.S. oil patch. Halliburton had reported its first-quarter 2026 results earlier in the week, with revenue of $5.4 billion and net income of $461 million, or $0.55 per diluted share, surpassing analyst estimates. The company noted signs of a North American recovery, despite a 4% year-over-year decline in North America revenue, primarily due to lower stimulation activity. International revenue, however, rose 3% year-over-year, driven by gains in Latin America and Europe/Africa.
In other energy-related developments, Canada approved pipeline giant Enbridge's proposed multibillion-dollar expansion of a west-coast natural gas pipeline system. The $4 billion Sunrise Expansion Program is designed to add approximately 300 million cubic feet per day of natural gas transportation capacity to the Westcoast pipeline system in British Columbia. This decision is expected to bolster Canada's efforts to increase natural gas exports to markets beyond the U.S. and contribute over $3 billion to Canada's economy, creating approximately 2,500 jobs during construction. Construction is slated to begin in July 2026, with an in-service date targeted for late 2028.