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JP Morgan favors UK oil majors BP and Shell amid strong Q3 earnings and Middle East risks.

Market News
08 Oct 2026
Proactive Investors
View Source
Bullish
JP Morgan favors UK oil majors BP and Shell amid strong Q3 earnings and Middle East risks.

JP Morgan recommends investors focus on UK oil supermajors BP and Shell during the Q3 reporting season due to strong earnings prospects driven by refining operations and ongoing Middle East geopolitical risks. The bank prefers these companies over TotalEnergies and holds an overweight view on Eni and Galp, citing their sensitivity to oil prices and operational improvements. While European oil stocks have outperformed recently, JP Morgan is cautious about midcap European energy firms due to signs of weakening refining margins and advises selectivity in that segment. The outlook reflects a positive free cash flow yield and earnings growth above consensus for 2027, supported by stable Brent crude prices and refining margins.

JP Morgan's preference for UK supermajors amid oil market risks is noted here with Pluang's Energy sector data as context. For readers following energy stocks, as of Oct 08, 2026 19:13 WIB, 40 of 62 priced US energy stocks on Pluang rose while 20 fell. Notable movers include EQNR at USD 42.96 with a 3.24% gain and a typical hold time of 59 days, SM Energy Company at USD 36.34 up 3.09%, and Vista Energy at USD 67.39 up 3.00%.

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