Haliburton (HAL) stock got a boost today when BMO Capital Markets initiated coverage of the stock with an “Outperform” rating. That, coupled with Haliburton’s recent supply contract with a major North Sea driller helped Haliburton pass its 52-week high of $29.26.

Schlumberger (SLB), the largest oil field services company, also leapt over its 52-week high of $66.18.

Oil field services players were hit hard in the first half of 2009 by the precipitous drop in crude oil prices. Since March, Halliburton (HAL) has been downgraded by JP Morgan,  Barclays, and Argus to neutral ratings, while FBR Capital Markets and Credit Suisse upgraded Halliburton to “Outperform.”

The rise in crude prices to above $75/barrel is the major contributor to the strength in the oil field services companies today. As crude prices rise, E&P companies typically begin investing in new drilling again.

Yesterday’s report from the U.S. Energy Information Administration showed a rise in commercial crude inventories of 400,000 barrels, but a drop in gasoline inventories of 5.2 million barrels. If gasoline supplies continue to drop, refinery usage will rise, and demand for crude will also begin to rise. That also means more drilling.

Another factor contributing to the rise in services shares is the recent report in the New York Times that some 10 billion barrels of new reserves have been added to global reserves so far this year. Somebody has to pull that out of the ground, and the services companies are the likeliest suspects.

The services companies have also reined in costs in response to being squeezed by the E&P companies. Halliburton booked employee separation costs of $12 million in the June quarter, and that is expected to be the end of its cost-cutting for now.

In many respects, Halliburton is simply riding the wave of optimism on crude prices and the global economy in general. If the signs of a recovery continue to improve, crude oil futures will continue to rise, pulling the services companies along for the ride.

But people drive less when they don’t have to commute to work. And if people drive less, all that new oil could just stay in the ground for awhile and get more valuable as time passes.

Today’s price rise for Halliburton is surely a bet on the future price of crude. The current expectation of crude price increases will keep services shares high. How long this expectation lingers remains to be seen.

Related Articles:

• Will Apple (AAPL) Deliver Earnings Surprise?
• Can WiMax Save Sprint?
• New ChangeWave Survey Shows Restaurant Sector Improving