Why banks are fast losing top oil analysts to that ever-naughty hobgoblin of global financial markets: the hedge fund.

Morgan Stanley's Douglas Terreson and Citigroup Inc.'s Doug Leggate, ranked first and second by Institutional Investor on coverage of the biggest oil companies, left their positions, the banks said. Geoff Kieburtz, the No. 3 analyst for oilfield contractors, is leaving Citigroup. Robert Morris, the top-ranked analyst for independent oil companies such as Anadarko Petroleum Corp., left Bank of America earlier this year.

Exxon Mobil Corp., Anadarko and other oil stocks rose to all-time highs this year as crude futures surged 46 percent to a record $139.89 a barrel and natural gas jumped 73 percent. The exits also came as banks and securities firms cut more than 83,000 jobs after the collapse of the subprime mortgage market led to $390 billion in writedowns and losses.

"Energy's been a hot area and you're getting some big turnover," said James Halloran, who helps oversee $38 billion in assets at National City Private Client Group in Cleveland. "A lot of this has to do with Wall Street either not paying the same rate, or not being the same place, to be as fun anymore."

Morgan Stanley dropped coverage of the three largest U.S. oil companies -- Exxon Mobil, Chevron Corp. and ConocoPhillips - - on June 4, after Terreson left, bank spokeswoman Jennifer Sala said last week. New York-based Citigroup, the largest U.S. bank by assets, got notice from Leggate on May 30.

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