The Block Traders' Oil & Gold Monitor is a unique newsletter that focuses on big block trading activity by institutional buyers. Through a sophisticated analysis of market maker hedge positions, editor Peter Way determines forecasted gains for specific sectors and stocks. Here, he looks at some current market maker favorites in the oil & gas industry.

Peter Way explains, "The reality for crude oil price expectations are reflected by hedging on some $85 billion of crude oil future contracts. Every month in 2008 sees enough likelihood of prices at $80 and above to cause a brisk business in insurance at those levels. In short, the crude oil price picture is one of stability to strength from high levels. As with any natural resource, it's always safer to bet on shortage than oversupply."

Looking at big market maker activity in individual stocks and stocks, the advisor adds, "The value buildup in Exploration & Production companies is clearly already under way and is likely to continue. Expect to see E&P companies acquired by the major integrated companies. Expect to see Oilfield Services companies kept very busy as supply continuity issues grow more severe."

Among exploration and production firms, he notes, "Current comparisons of market prices to the expectations of the million-dollar market-makers for their near future prices continues to make many of them attractive to buy."

The stand-outs, he says, are Range Resources (NYSE: RRC), Plains Exploration (NYSE: PXP) and, among refiners, Holly Corporation (NYSE: HOC).

The advisor adds, "The oil services and transport sector also has its share of promising stocks. Their price expectations are supported by high current crude prices and the likelihood of even higher ones." He suggests, "Leading the pack are Hercules Offshore (NASDAQ: HERO), W-H Energy Services (NYSE: WHQ), and the pipe supplier Tenaris (NYSE: TS)."

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.