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Morgan Stanley downgrades energy stocks Chevron and Occidental, citing valuation concerns

Offshore workers examine hydrocarbon samples aboard the Chevron Corp. Jack/St. Malo deepwater oil platform in the Gulf of Mexico off the coast of Louisiana, U.S., on Friday, May 18, 2018.
Luke Sharrett | Bloomberg | Getty Images

The stocks leading the rally in the energy sector are looking a bit overstretched and could pull back, according to Morgan Stanley.

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