Bernstein Raises Crude Oil Price Estimate 27% for '08; Upgrades XTO, APA, ECA

Sanford Bernstein raised its price forecast on crude oil by 27% from last year, saying crude will average $92.30 a barrel over the course of 2008. The firm said, "rising marginal cost is the underlying driver of our higher commodity price forecasts. All our data point to declining reserves per well."

Responding to the higher crude estimates, Bernstein raised its investment ratings on several oil & gas operations companies:

• XTO Energy (NYSE: XTO) from Market Perform to Outperform; $69 price target
  
• Apache Corp. (NYSE: APA) from Underperform to Market Perform; $133 price target
  
• EnCana (NYSE: ECA) from Underperform to Market Perform.

Additionally, Bernstein also raised its price estimates on gas 7% from $7 in 2007 to $8.30 per million cubic feet expected this year.

Notably, Bernstein was also bullish on Nabors (NYSE: NBR), Halliburton (NYSE: HAL) and Baker Hughes (NYSE: BHI). The firm currently has a $41 price target on Nabors, $48 price target on Halliburton, and $93 price target on Baker Hughes. [BCS]

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