Deutsche Bank upgraded the entire refining sector and raised price targets in a long piece entitled, "Oil has a future-so do refineries."
1) demand improving, helped by cold weather, though still weak;
2) inventory overhang being worked off due to refinery shutdowns, with utilization low in those that are operating;
3) oil prices will FALL in 2010 to $65 a barrel, which will improve margins for gasoline refiners.
DB energy analyst Paul Sankey does hedge his bets: "Our biggest concern in 2010 is a major terrorist attack. Post-911 impact suggests that this will be very negative fo r oil demand, and refiners."