Moody's: Oil service view stable

The oil field service's outlook was changed to stable from negative reflecting the sector's mix of relatively strong segments, such as deepwater drilling and some weaker segments such as offshore logistics, said Moody's Investors Service in a new report.

Oil field services companies supporting oil or natural gas plays with high liquids content should see enduring demand in 2010, Moody's said.

However, companies focused on North American natural gas plays could see a weaker second half of 2010 because of tepid natural gas supply-and-demand fundamentals, the agency said.

Overcapacity in the oil field services sector has declined, stemming price erosion and stabilizing earnings and cash flows, Moody's said.

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