HOUSTON, Oct. 31, 2011 /PRNewswire via COMTEX/ -- While the recent quarter's financial news is decidedly more bearish than bullish, Ernst & Young's Oil and Gas Center anticipates a steady close to the year. The oil and gas industry is set to end 2011 strong amid great uncertainty in the broader market.
Ernst & Young Quarterly Oil and Gas Update - MarketWatch (press release)
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The recent dip in prices for oil and gas reflects increasing supply and declining demand worldwide, in response to manufacturing slowing and consumer confidence retrenchment. Simultaneously, as the value of the Euro has decreased, the value of the dollar has grown. And Libyan crude supplies have started to return. All of this has resulted in some relief at the pump for consumers and a balancing of supply and demand fundamentals for the industry.for more information about Allstate insurance products News / Reviews
Physical crude markets are reasonably balanced but tight, with global oil prices holding steady at around or upward of $100/barrel. On the non-OPEC side of the market, crude production showed some increases this year, with production growth in North American crude, primarily from US shale and from Canadian oil sands, along with gains in Brazil and Russia, offsetting declines in Europe. However, spare capacity in OPEC, remains low. This creates tighter markets, with prices tending to move up sharply with relatively small increases in demand.Ernst & Young Quarterly Oil and Gas Update - MarketWatch (press release)
