Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Oil Prices Stabilize at Start of 2026 as OPEC+ Policy and Geopolitical Risks Shape Market Outlook 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
U.S. Stocks Slip as Gold Rebounds Ahead of Year-End, Markets Eye 2026 Outlook 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
European oil and gas equities are entering 2026 on a more cautious footing as J.P. Morgan’s latest EU Oils Outlook highlights tightening valuations and growing concerns over a projected global oil oversupply. Despite Brent crude slipping 7% in the second half of 2025, EU oil stocks managed to outperform the broader European market by 6%, creating what the brokerage calls a “significant positive decoupling.”
Analysts now view sector valuations as “full,” noting an estimated 7.8% free cash flow yield for 2026 based on $62/bbl Brent—considered rich compared with long-term norms. Consensus forward P/E ratios around 10.3x suggest the sector trades in line with its 10-year average discount as forward curves point to Brent stabilizing near $60/bbl. J.P. Morgan’s commodities research, however, expects Brent to fall below that level through 2026 and 2027 as oversupply builds, putting further pressure on earnings expectations.
Only Shell and Repsol retain “overweight” ratings. Shell, the bank’s top pick, is supported by strong free-cash-flow generation, a projected 10.1% 2026 cash yield, and resilient downstream exposure that hedges against lower oil prices. Repsol benefits from high diesel leverage, a 6.1x 2026 P/E, and a robust 6.5% dividend yield as refining continues to deliver sizable operating profits.
Several majors face downgrades: TotalEnergies is cut to “neutral” due to limited valuation upside and slower free-cash-flow growth from its Integrated Power segment, while Eni moves to “underweight” as rising gearing and sensitivity to upstream prices weigh on the outlook. BP, Galp, and Neste remain “neutral,” whereas Equinor and OMV are rated “underweight.”
Across the sector, average dividend yield stands at 5.7%, while overall upside potential remains below 5%. With Europe structurally short on diesel and still relying on imports for about one-fifth of demand, elevated diesel margins continue to provide a crucial hedge for downstream-weighted companies.
