Nine Energy Service Soars 10.77% on OPEC+ Output Boost

Nine Energy Service's stock surged by 10.77% in pre-market trading on May 8, 2025, marking a significant uptick in its share price.

This week, the energy sector faced substantial challenges due to a sharp decline in West Texas Intermediate (WTI) crude prices, which dropped to around $57 per barrel. This decrease was triggered by OPEC+ announcing a larger-than-expected output increase for June, following a similar boost in May. The group is now adding over 800,000 barrels per day to the market over two months. Saudi Arabia's aggressive strategy aims to discipline overproducing members and expand its market share, potentially influenced by political pressures from the U.S.

Goldman Sachs has revised its forecast for U.S. crude prices this year, lowering it by $3 to $56 per barrel. With oil prices hovering around $58, many U.S. shale producers are struggling to break even, leading to potential job cuts and reduced drilling activities. This situation has prompted industry warnings that U.S. oil production may have peaked and could begin to decline.

Nine Energy Service, Inc., an onshore completion services provider targeting unconventional oil and gas resource development in North America and internationally, has been significantly impacted by these market conditions. The company's share price declined by 26.1% between April 30 and May 7, 2025, reflecting the broader challenges faced by the energy sector.