Oil service sector and refiners will continue to be hot all summer. I own call options on both. There is already gas shortages and summer hasn't even started. Todays draw down of 5 million barrels is just a hint for whats to come.
Deals of the day -- mergers and acquisitions (http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070405:MTFH87558_2007-04-05_06-14-37_SP155391&type=comktNews&rpc=44)
<Norwegian oil driller SeaDrill Ltd. (SDRL), which is seeking aggressive growth, confirmed it is in deal talks with U.S. drillers such as Noble Corp. (NE) and GlobalSantaFe Corp. (GSF)>
GSF and NE are a part of OIH 15 holdings. A buyout of any of these companies should bring a conservative 20% premium estimate. If 1 of the 15 holdings goes up 20% thats a, very conservative estimate of, 1.34% gain for OIH.
If the drillers start to be acquired that will send up prices of other drillers. So as you can see its a snowball effect. The sector will be on fire all summer =)