Goldman Sachs research analysts on Friday raised their oil-refining coverage view to neutral from cautious on a better demand outlook. he action includes an upgrade of Holly Corp. (HOC) to buy from neutral and Sunoco Inc. (SUN) to neutral from sell. Goldman also added Occidental Petroleum Corp. (OXY) to its conviction buy list, joining Suncor Energy Inc. (SU) and Petroleo Brasileiro SA (PBR).

"We increasingly believe we are moving through the trough of the refining cycle," Goldman analysts said in a note to clients. "We now see oil-demand growth equal to or slightly in excess of refining capacity growth over the next few years. Unlike crude oil, we believe a refining recovery will be more gradual as we think a relatively high level of excess capacity will persist."

-By Steve Gelsi, 415-439-6400; AskNewswires@dowjones.com