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Quarter-End Insights

Our Outlook for the Energy Sector

We've raised our outlook for oil and gas, coal, and deep-water drillers.

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Thus far, 2008 has seen unprecedented increases in energy commodity prices, driven by growing supply bottlenecks and persistent demand. Recognizing that some constraints are deep-rooted and that there are secular forces driving the cost of supply higher, we've raised our assumptions for oil, coal, and natural-gas prices, as well as our day rate assumptions for deep-water drillers.

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Elizabeth Collins has a position in the following securities mentioned above: PBR. Find out about Morningstar’s editorial policies.