Deutsche Bank Upgrades U.S. Refinery Stocks (DK, VLO, SUN, TSO, FTO, CVI)

Deutsche Bank upgrades U.S. refinery stocks. The firm said, "Having been resolutely negative on US refining all through 2009, we see several major relative positives in 2010. First, always, is demand, and it is clearly improving, helped by cold weather. With strong industry discipline both shutting down refineries and keeping utilisation low, we are working off the inventory overhang. If global demand keeps improving, OPEC will be forced to increase production, widening the heavy-light spread, improving margins. On a secular basis the giant CO2 legislation threat is gone, we believe, until at least 2011."

Rating changes:

Delek US (NYSE: DK) - Hold to Buy, tgt $7 to $10
Valero Energy (NYSE: VLO) - Sell to Hold, tgt $15 to $17
Sunoco (NYSE: SUN) - Sell to Hold, tgt $18 to $25
Tesoro Corporation (NYSE: TSO) - Hold to Buy, tgt $12 to $18
Frontier Oil (NYSE: FTO) - Hold to Buy, tgt unch at $15
CVR Energy (NYSE: CVI) - Hold to Buy, tgt unch at $10

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Deutsche Bank, OPEC

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