It's Wednesday, February 23rd, and this is Market Fullery.

I'm Chris Hill and joining me in studio today from Motley Full Income Investor James Early,

from Million Dollar Portfolio, Ron Gross, and from Motley Fool Asset Management, Bill Barker.

Guys, good to see you.

Good see you, Chris.

Hewlett Packard's earnings in a moment, but we will start with the continuing unrest

in the Middle East.

The fighting is spreading throughout Libya, and King Abdullah has returned to Saudi Arabia

and introduced social and economic reforms.

James, as investors, the business part of this story is first and foremost about oil.

Oil prices have hit another two-year high.

What does it mean for stocks connected to the oil industry?

Chris, it helps oil companies like Chevron, ExxonMobil, maybe not E&I, which is an Italian company

directly exposed to Libya, but I particularly like Chevron because compared to the rest of the

oil majors it has a lot less refining exposure and refining is getting squeezed right

now.

Refiners have to buy oil at higher prices from oil producers and then they often have trouble passing along those costs.

Valero, in fact, the biggest refiners down 10% Chris in the past few days.

So are all refiners in the same boat or are some in better shape than others?

Actually they're not in the same boat. Two-thirds of the world's oil is contracted at

European prices which are now like $19 per barrel higher than American prices.

West Texas Intermediate, it says.

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