SHEARSON LEHMAN UPGRADES U.S. OIL STOCKS

  Analyst Sanford Margoshes of Shearson
  Lehman Brothers said he recommended a number of oil stocks
  today now that it is apparent that OPEC has succeeded in
  holding to its prescribed production quotas.
      "It is clear that OPEC, through jawboning and quota
  restraint, will boost the price of oil," Margoshes said.
      Prices of oil stocks rose sharply today in response to
  higher oil prices and optimism about OPEC quotas. Margoshes
  said he recommends Imperial Oil &lt;IMO.A>, up 1/2 to 49-1/8,
  Standard Oil Co &lt;SRD>, 7/8 to 62-3/4, Exxon &lt;XON> one to
  83-1/8, and Chevron &lt;CHV> 1-1/8 to 54-7/8.
      In addition, Margoshes said he recommended Atlantic
  Richfield &lt;ARC> on a short-term basis, though he said he is
  still suspect about its debt situation. Atlantic Richfield rose
  1-3/4 to 77.
      He said "the market could come down to test the 16 dlr a
  barrel level again, but the main thrust of investing in oil is
  positive right now. Before the year is out we will see higher
  oil prices."
      He noted that belief that the government is interested in
  raising the strategic reserves is factored into the rise in oil
  stocks today.
  

