SHEARSON LEHMAN UPGRADES U.S. OIL STOCKS
Analyst Sanford Margoshes of Shearson
Lehman Brothers said he recommended a number of oil stocks
today now that it is apparent that OPEC has succeeded in
holding to its prescribed production quotas.
    "It is clear that OPEC, through jawboning and quota
restraint, will boost the price of oil," Margoshes said.
    Prices of oil stocks rose sharply today in response to
higher oil prices and optimism about OPEC quotas. Margoshes
said he recommends Imperial Oil <IMO.A>, up 1/2 to 49-1/8,
Standard Oil Co <SRD>, 7/8 to 62-3/4, Exxon <XON> one to
83-1/8, and Chevron <CHV> 1-1/8 to 54-7/8.
    In addition, Margoshes said he recommended Atlantic
Richfield <ARC> on a short-term basis, though he said he is
still suspect about its debt situation. Atlantic Richfield rose
1-3/4 to 77.
    He said "the market could come down to test the 16 dlr a
barrel level again, but the main thrust of investing in oil is
positive right now. Before the year is out we will see higher
oil prices."
    He noted that belief that the government is interested in
raising the strategic reserves is factored into the rise in oil
stocks today.
 Reuter
