Texaco And Shell?

Oil stocks are hot, thanks to the leap in world petroleum and natural-gas prices. A big mover is Texaco (TX), second only to ExxonMobil in the U.S. "Texaco's [production] operation is one of the most sensitive to the rise in prices," says analyst Jordan Horoschak of Standard & Poor's. More riveting to some big investors is Texaco's allure as a takeover target.

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