Barclays says market 'too bearish' on European natural gas
** The market appears too negative on European natural gas sector, with gas prices up 30% so far in November due to colder weather and low renewables availability, according to Barclays
** The brokerage sees gas as a relative area of strength, and expects 2025 likely to remain tight on LNG supply before moving into a buyer's market from 2027-2030
** It upgrades Equinor EQNR.OL to "overweight" from "equal-weight", forecasting natural gas prices in Europe set to be ahead of market expectations until at least 2027
** It sees Equinor among the highest-quality names in its coverage of the sector,with sector-leading returns, low carbon intensity and a balance sheet that is still net cash
** Names "overweight"-rated Harbour Energy HBR.L, Var Energi VAR.OL, Shell SHEL.L, TotalEnergies TTEF.PA, and Eni ENI.MI among other stocks set to benefit from a period of higher natural gas prices
** It says OMV OMVV.VI has a higher than average sensitivity to European natural gas prices, but keeps "underweight" rating given the point the sector is at in the chemicals cycle
COMPANY | NEW RATING | OLD RATING |
|---|---|---|
Equinor | overweight | equal-weight |
Shell | overweight | overweight |
TotalEnergies | overweight | overweight |
Harbour Energy | overweight | overweight |
Var Energi | overweight | overweight |
Eni | overweight | overweight |
OMV | underweight | underweight |
Reporting by Marta Frąckowiak
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
