London, United Kingdom (PressExposure) August 11, 2010 -- “Sovereign-International” analysts have told clients that they should prepare to acquire the stocks of oil majors, explorers and services companies on dips in price.

The firm believes that the populist-driven moratorium on offshore drilling will be subject to swift and decisive reversal when the price of oil begins to approach $100 a barrel and American motorists start feeling the pinch of higher gasoline prices at the pump.

One “Sovereign-International” analyst said, “We think that moral outrage and environmental piety will be thrown out of the window once Joe Sixpack and Sally Housecoat start having to pay over $3.50 a gallon to fill the tank of their gas guzzling Buick”.

Oil has endured something of a roller-coaster ride since it reached a record high of $147 a barrel in the summer of 2008. It fell back sharply to just over $30 but, today, hovers around the $80 a barrel mark. Although the global economic recovery appears to be slowing, “Sovereign-International” expects that global governments will begin adding further monetary and/or fiscal stimulus to provide a further boost which should see oil prices rise again, certainly in dollar terms.

The firm believes that a pullback in equity prices will provide an excellent opportunity to gain exposure to rising oil prices which will inevitably increase oil company profits.

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