Exane sees OPEC+ excess capacity looming over oil & gas sector
** Exane BNP Paribas says it sees a "substantial" excess OPEC+ capacity hanging over the oil & gas sector "like the Sword of Damocles", anticipating a new phase for oil markets
** The broker warns that the excess OPEC+ capacity is colliding with insufficient global demand to absorb next year's expected non-OPEC supply growth
** Exane says the Brent oil price will have to move to a $60-65 per barrel level that may not only stimulate demand improvement but also drive short-cycle U.S. supply curtailment
** The broker cuts the most refining-exposed names due to the weaker economic outlook; Repsol REP.MC to "neutral" from "outperform" and Exxon Mobil XOM.N to "underperform" from "neutral"
** It also cuts BP BP.L to"neutral" from"outperform," saying it sees better value in "outperform"-rated Shell SHEL.L,
** It upgrades OMV OMVV.VI to "neutral" from "underperform" given improved petrochemical margins
Reporting by Joao Manuel Mauricio
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