While the rest of the oil and gas space has endured a miserable 2015, refiner stocks have been soaring. But, will 2016 produce more of the same, or is not the time for refiner investors to be cashing in?

In a new report, Goldman Sachs analyst Neil Mehta discussed which refiners Goldman is selling and which ones the firm still likes.

Risk/Reward

Despite the 15 percent decline in the Energy Select Sector SPDR (ETF) XLE 2.25% in 2015 and only about a 3.0 percent gain by the S&P 500, refiners as a group are up a whopping 32 percent this year. At current elevated prices, Goldman believes that stock picking is now critical.

“While we continue to believe refiners will benefit from strong gasoline demand, capital returns to shareholders and favorable capture rates due to low oil prices, we are more concerned about tighter inland crude differentials, MLP-related upside and potential oversupply in the diesel markets,” Mehta added.

Three Investment Themes

Morgan Stanley is…

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