American oil, gas industry staves off geopolitical strife in 1Q

The North American oil and gas market started the year on a good note during the first quarter as a cold winter brought relief to producers and refiners while Mexico progressed on energy reform, Ernst & Young said in its US quarterly report on the industry.

Even with lingering geopolitical risks in the Middle East, North Africa, and now Russia and Ukraine, E&Y said it expects market dynamics to remain positive during the rest of 2014.

“We are probably looking at some short-term seasonal downward pressures on both oil and natural gas prices, but we’re looking for moderately strong demand growth over the second half of the year that should support prices,” said Deborah Byers, E&Y US oil and gas leader.

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