Analyzing the short- and long-term effects of oil prices, and the investment impact on the sectors, subsectors and key stocks.

Pipeline operator Plains All American Pipeline announced that it has entered into a firm agreement to acquire the 50% interest that Occidental Petroleum holds in BridgeTex Pipeline for $1.075 billion.

As Sunni militants continue their offensive in western Iraq, the price of oil is surging, as the markets read the unstable situation as further evidence that Iraq will be unable to sustain its oil production levels of around 3.3 million barrels per day.

The best scoring sector remains utilities this week. Basic materials and healthcare score in line with the average universe score. In basics and healthcare, large and mid cap score better relative to peers than small cap.

Our top scoring large cap stocks from 1 year ago produced an average 666 bps of excess return to the S&P 500 over the past year.

Diversified chemicals and ammunition manufacturer Olin Corporation (OLN: $27/share) is in the Danger Zone this week.