In This Issue

For years now, producers of crude oil from the burgeoning shale fields in the North American interior have been forced to sell it to refiners at a hefty discount. But Chief Investment Officer Robert Rapier expects that discount to shrink as pipelines and export terminals are built. And if the economic recovery ultimately pushes the price of oil much higher, as he expects, the stocks of the producers able to boost output fastest will soar. We’ll tell you which ones to buy now.

In the meantime, US refiners are collecting a huge windfall by scooping up cheap crudethat can’t easily reach the more lucrative export markets. Marathon Petroleum in particular has been a money machine since its spinoff 19 months ago. And though the stock’s too hot after another quarter of better than expected earnings, it’s headed higher still, Managing Editor Igor Greenwald writes.

We also have portfolio updates on Valero, another hard-charging refiner we like, and Petrobras, a portfolio holding that’s still slumping. Finally, we anwer leftover chat questions. Thank you for asking them.