The article which lays out the above thesis in detail can be found here:
Oil Product Inventories May Rise Until January And Weaken Gasoline And Oil Prices; Refiner And E&P Equities Are Due For Corrections As Well
Charts that are critical to the thesis:
What do these market developments mean for Refiners equities?
Surprisingly, US Refiners` equities do not correlate very well with gasoline prices or with the price of crude oil. Quarterly changes in Refiners equities have good correlation with the changes in Crack Spread 321, and will therefore be subject to the implications of the simple models for gasoline consumption and stock building (see chart below).
However, the best leading relationships one can find for US Refiners equities is with global demand, global consumption, and outlook for US CO&LF demand. The impact of recent changes in net global and US oil demand and consumption is expected to weaken US Refiners`equities in December - January. A recovery from those low points will likely extend gains of E&Ps up to March-April.
What do these market developments mean for E&P equities?
The best leading relationships one can find for E&P equities is with global production and global supply. (I tried US production and supply data, but I get results which are no better than random correlations, and therefore yield unsatisfactory results.) The impact of recent rise in net global oil production and supply is expected to weaken E&P equities in December-January. However, subsequent waning of global production and supply data should trigger E&P equity gains thereafter. E&P sub-sector recovery from those low points will likely extend its gains up to March-April.
For methodologies used in the above analyses, more information is available in this Seeking Alpha article:
A long view:
A short-term view:
Good luck, everyone!