central bank of norway, page-7

according to Fosters.....

Lower A$, higher WTI oil, improving US growth, and Middle East instability positive for oil equities.

Aurora Oil & Gas (AUT, $3.23, Mkt cap $1,447M); Oil Search (OSH, $8.10, Mkt cap $10,854M); Sundance Energy (SEA, $0.965, Mkt cap $446M); and Beach Energy (BPT, $1.35, Mkt cap $1,713M). Trading Buys.

•So far year to date, the WTI oil price has rallied 14% from US$89/bbl to US$103/bbl,. Improving economic growth in the US, disciplined OPEC production, and heightened geopolitical risk in the Middle East (Egypt, Syria) have underpinned the oil price. During the same period, the A$ has declined 13% from US$1.05 to US$0.91. This means that effectively in A$ terms, the oil price has increased 33% from A$84/bbl to A$113/bbl. All this is a boon for investors in ASX listed oil stocks, especially those that are in production, given the translational impact on A$ valuations and shareprices.

•While oil and gas stocks have rallied strongly over the past week, we believe there is still some catch up to do, given that most oil and gas equities have underperformed the A$ oil price movement year to date. Of the producers, we rate Aurora Oil & Gas (AUT), Oil Search (OSH), Beach Energy (BPT), and Sundance Energy (SEA) as the best exposure to the stronger WTI oil/weaker A$ theme.

http://www.fostock.com.au/announcements/lower-a-higher-wti-oil-improving-us-growth-and-middle-east-instability-positive-for-oil-equities