Cenovus (CVD) Upgraded RBC Capital as Oil Continues Fall

RBC Capital upgraded shares of Cenovus Energy (NYSE:CVE) from (Sector Perform) to "Outperform," even as oil and gas prices continue to plunge. They have a price target of $42 on the company.

U.S. crude futures fell 2.3 percent and gasoline futures dropped 5 percent to hit a nine-week low as worries mounted about high prices squelching energy demand and the fragile economy weigh on the industry.

Crude futures have fallen close to 15 percent so far on the month.

Oil futures were down 2.3 percent to $97.37 a barrel in New York. June Brent fell to $112.87, down 1 percent for Monday.

Gasoline futures for June delivery declined 14 cents, or 5.01 percent, to end the session at $2.93 a gallon, the lowest close since March 16.

U.S. gasoline at the retail level fell to $3.955 Monday from $3.961 Sunday. Diesel prices dropped $4.123 from $4.127.

June natural gas closed up 7 cents, or 1.7 percent, at $4.32 per million British thermal units. Natural gas prices were up on concerns flooding in Louisiana may cut back on supply.

Heating oil futures were down Monday, with the June heating oil contract closing at $2.87 a gallon, down 7 cents, or 2.3 percent.

Cenovus Energy Inc. partcipates in the development, production, and marketing of crude oil, natural gas, natural gas liquids and bitumen, in Canada with refining operations in the America.

Cenovus closed Monday at $33.57, falling $0.41, or 1.21 percent.

Ratings on (CNX) (CRZBY) (CVE) (DAR) (ENOC) Upgraded

Ratings on CONSOL Energy Inc. (NYSE: CNX), Commerzbank AG (NASDAQ: CRZBY), Cenovus Energy Inc (NYSE: CVE), Darling International Inc. (NYSE: DAR) and EnerNOC, Inc. (NASDAQ: ENOC) were upgraded by analysts.

Citigroup (NYSE:C) upgraded CONSOL Energy Inc. (CNX) from a “hold” rating to a “buy” rating.

Nomura upgraded Commerzbank AG (CRZBY) from a “reduce” rating to a “neutral” rating.

RBC Capital upgraded Cenovus Energy Inc (CVE) from a “sector perform” rating to an “outperform” rating. They have a price target of $42.00 on the company.

Morgan Joseph upgraded Darling International Inc. (DAR) from a “hold” rating to a “buy” rating. They have a price target of $21.00 on the company.

Credit Suisse (NYSE:CS) upgraded EnerNOC, Inc. (ENOC) from a “neutral” rating to an “outperform” rating. They have a price target of $23.00 on the company.

Chevron (CVX) (XOM) (BP) (COP) Jump on Low Oil Inventories

Shares of Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), BP (NYSE:BP) and ConocoPhillips (NYSE:COP) were all jumping today on news Oil inventories fell by 2.3 million barrels last week, according to the Energy Information Administration.

Expectations were oil inventories were going to increase by 1.6 million barrels.

Consequently the price of crude oil surged over the $110 a barrel mark again. Nymex oil for June delivery increased 2.1 percent to $110.54 as of 11:25 AM EDT.

Looking forward to the earnings reports of big oil companies next week, Key Private Bank analyst Steven Hoedt say he likes Hess Corporation (NYSE:HES), “which stand to benefit disproportionately from wide crack spreads, which means robust refining margins, leading to the potential for earnings surprises.”

Also noted was the Alberta tar sands play, where Hoedt noted, “With spare capacity tight, price needs to remain persistently high over an extended period of time for the message to be sent that capital needs to be committed to developing productive capacity. We continue to believe that one of the prime beneficiaries of this growing investment will be the oil sands of Alberta, where many are waking up to the fact that the region has 50-75 years of reserves in the ground. While incredibly costly to bring on line, once in production, a company has possession of long-duration reserves and there are very few places in the world today where it is possible to find even medium-duration oil reserves where there is also political security. In other words, the oil sands are a strategic asset that is currently being undervalued by the market, in our view. Prime beneficiaries are Suncor Energy (NYSE:SU), Cenovus Energy (NYSE:CVE), and Canadian Natural Resources (NYSE:CNQ), in our view.”

BP was trading at $45.87, gaining $1.19, or 2.66 percent, as of 1:59 PM EDT. Exxon was trading at $85.49, up $1.69, or 2.02 percent. ConocoPhillips was at $ 79.96, rising $1.81, or 2.32 percent. Chevron was trading at $107.87, increasing $2.47, or 2.34 percent.