10:47 AM EDT, 03/24/2025 (MT Newswires) -- Investors overall remain "relatively" cautious on the oilfield services sector as macroeconomic uncertainty is "a tough current for the sector to swim against", RBC Capital Markets said in a Monday note.

RBC said a few "encouraging undertones" remain with respect to steady rig count demand in North America, provider discipline, and continued free cash flow (FCF) generation.

According to RBC, its favorite stocks include those with differentiated and resilient business models, offering unique thematic exposure, basin diversification, and strong or improving FCF fundamentals.

In North America, Canadian first quarter rig counts have averaged 241, slightly above RBC's estimate, but still within the forecast of 192 for the year.

RBC said investor sentiment has marginally improved in the past week, but remains relatively cautious due to the unknown tariff impact on supply chains, macroeconomic uncertainty, and potential for softer crude oil prices on the back of a sloppy physical market.

RBC said it favours Pason Systems ( PSYTF ) and Trican Well Service ( TOLWF ) in its Canadian oilfields services coverage.

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