Deutsche Bank equity analyst Paul Sankey reports that a number of factors have alleviated major short-term pressure on oil supply.
"There has been no security-related outage to Southern Iraqi oil exports since last August," Sankey says. There is also "the relative success of the Iraqi elections, particularly in the Kurd- and Shia- dominated oil areas and the failure of insurgents to interrupt oil exports through the process." Sankey says the firm is now very defensively positioned, with U.S. buys only on ExxonMobil (NYSE: XOM) and Amerada Hess (NYSE: AHC), neutral leveraged names ChevronTexaco (NYSE: CVX) and ConocoPhillips (NYSE: COP).
The no-change quota decision that resulted ...