For Immediate Release

Chicago, IL – November 6, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Oil & Gas sector, including CNOOC Ltd. (CEO), China Petroleum and Chemical Corporation, or Sinopec (SNP), Cameron International (CAM), Nabors (NBR) and Patterson-UTI (PTEN).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/26953/Oil+%26amp%3B+Gas+Industry.

The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are China’s CNOOC Ltd. (CEO) and China Petroleum and Chemical Corporation, or Sinopec (SNP), both of which remain well-placed to benefit from the country’s growing appetite for energy.

CNOOC enjoys a monopoly on exploration activities in China’s very prospective offshore region in addition to having a growing presence

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OUTLOOK The improving economic scene, both here in the U.S. as well as worldwide, is the main driver of the current oil rally that has seen the commodity settling around the $80 per barrel level. But high levels of product inventories (particularly gasoline), along with still higher supplies, will limit any sustained crude gains, in our view. But way too many factors weigh on oil prices, from OPEC decisions and geostrategic tensions to the value of the U.S. dollar and seasonal variables, to definitively size up each one of them for their respective impact on prices.  In its latest release, the Energy Information Administration (EIA) reported a less-than-anticipated increase in crude stockpiles, which rose by 800,000 barrels for the week ending October 23. However, current crude oil stocks, at 339.9 million barrels, still remain 9% above the year-earlier level as well as above the upper limit ...

  In its weekly release on Friday, Baker Hughes Inc. (BHI) reported a slight dip in the number of rigs searching for oil and gas in the U.S., as producers restricted their drilling activities in response to the current supply overhang in the natural gas market. The number of units exploring and producing in the U.S. fell to 1,040 for the week ended October 16 (as clear from the first chart below from Baker Hughes). This is down by 1 from the previous week’s tally and is the first decline in 5 weeks. The combined oil and gas rig count is down by 936 from the year-ago period. It rose to a 22-year high in 2008, peaking at 2,031 in the weeks ended August 29 and September 12. The number of natural gas rigs drilling in the U.S. decreased by 5 to ...

According to data from Baker Hughes Inc. (BHI), the number of rigs searching for oil and gas in the U.S. rose for the week ended Oct. 9, reflecting ramped up drilling activity by the producers amid recent optimism about commodity price recovery. As shown in the first chart below from Baker Hughes, rigs exploring and producing in the U.S. totaled 1,041 during the week. This is up by 17 from the previous week’s tally and is 19% higher from the 2009 low of 876 (set in the week ended June 12). The combined oil and gas rig count is down by 949 from the year-ago period. It rose to a 22-year high in 2008, peaking at 2,031 in the weeks ended Aug. 29 and Sept. 12. The number of natural gas rigs drilling in the U.S. increased by 14 to 726, ...

• China Unicom also advised iPhones will be sold in China beginning in October.  Meanwhile, Apple (NASDAQ:AAPL) said iTunes' application downloads exceeded the 2 billion mark

• MBIA's (NYSE:MBI) main bond insurance unit was downgraded by S&P to non-investment grade status

• Dell (NASDAQ:DELL) revealed a new, high-end, ultra thin PC

• Cameron International (NYSE:CAM) reported a $500 million subsea equipment deal with Petrobras

• Howard Shultz, CEO of Starbucks (NASDAQ:SBUX), offered high hopes for its Via Ready Brew instant coffee product, claiming it "perhaps the biggest opportunity" in the company's history, amid today's North American launch

• Walgreens' (NYSE:WAG) reported fiscal fourth quarter results of 47 cents ex-items, topping estimates of 39 cents, on sales of $15.7 billion

• Goldman Sachs (NYSE:GS) lifted price targets on several retailers, including conviction buys on Target (NYSE:TGT) and Macy's (NYSE:M)

• Citigroup (NYSE:C) started coverage of Dr. Pepper Snapple (NYSE:DPS) and Coca-Cola (NYSE:KO) with "buy" recommendations

• Bank of America

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According to data from Baker Hughes Inc. ((BHI), the number of rigs searching for oil and gas in the U.S. fell for the week ended Sept. 11, reflecting scaled back drilling activity by the producers. As shown in the first chart below from Baker Hughes, rigs exploring and producing in the U.S. totaled 999 during the week. This is down by 10 from the previous week’s tally and is the first decline in nine weeks. The combined oil and gas rig count is down by 1,032 from the year-ago period, when it rose to a 22-year high of 2,031. The number of natural gas rigs drilling in the U.S. decreased by 2 to 699, snapping a seven-week gain. It is currently down 56% since peaking at 1,606 in the year-ago period. This is shown in the following chart, also from Baker ...

* Nike (NYSE:NKE) reported a worse-than-expected decline in new orders, down 12% through November from a year ago, or 5% excluding currency adjustments. Fourth quarter earnings, however, beat expectations at 99 cents ex-items, three cents ahead of projections, as revenues fell 7% to $4.7 billion

* Oracle (NASDAQ:ORCL) reported better-than-expected earnings and revenues with first quarter guidance beating estimates.  The company reported fourth-quarter earnings of 46 cents ex-items, two cents ahead of estimates, as revenues fell 5.2% to $6.86 billion versus estimates of $6.47 billion. First quarter earnings estimates of 31 cents to 33 cents a share beat estimates of 30 cents

* Toyota's (NYSE:TM) new President said the firm is expected to face "two more difficult years"

* Lennar (NYSE:LEN) reported a loss of 76 cents versus a 76 cent loss a year ago, worse than estimates of a 64 cents loss as write downs increased. Revenues fell 20.9% to $892 million

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