For Europe's oil ang gas firms geopolitics is in the driving seat - analyst

Proactive

Wed, February 25, 2026 astatine 9:49 AM CST 1 min read

JP Morgan sees geopolitics reclaiming the driver’s spot for European lipid and state equities, arguing that a higher hazard premium has helped propulsion lipid prices up, and dragged vigor shares higher year-to-date successful the process.

The bank's analysts, successful a note, said the sector’s caller show has “re-coupled to rallying lipid prices” aft a agelong of “positive decoupling” successful the 2nd fractional of 2025, adding that the determination looks progressively macro-led fixed a “relatively benign EPS revision backdrop” adjacent arsenic stock prices person tally ahead.

In a mark-to-market refresh of its 2026 and 2027 numbers, JPMorgan sees Brent astatine $69 and $66, portion keeping its semipermanent Brent presumption unchanged astatine $65.

The analysts astatine JP Morgan favour 'overweight' ratings for Shell PLC (LSE:SHEL, NYSE:SHEL) and Galp, portion flagging greater caution connected names specified arsenic underweight Equinor and Eni, wherever it sees higher dependence connected lipid and state terms outcomes.