OMVKY - Jefco 2022 energy outlook - bullish gas bearish oil GALP up to buy

Jefferies energy team out with a 2022 outlook note, and unlike peers at JPMorgan and Goldman Sachs, Jefferies takes a bearish tact on oil into next year (NYSEARCA:USO) (CL1:COM) Jefferies sees OPEC+ flooding the oil market in 2022, leading to inventory builds and lower prices; currently, the bank forecasts $68 Brent (CO1:COM) in 2022 falling to $63 in 2023 Conversely, Jefco sees falling European gas production, Nord Stream II uncertainty, and coal to gas switching driving gas prices higher - the bank increases their 2022 Euro natural gas price 44% to $15 / mmbtu With European oil companies (NYSE:RDS.A)(NYSE:BP)(NYSE:TTE)(NYSE:EQNR)(OTCPK:OMVKY)(NYSE:E)(OTCQX:REPYY)(OTCPK:GLPEY) trading on a 15% free cash flow yield on the relatively bearish Jefco 2022 commodity price deck, the analyst is bullish the equities, having 5 of 8 Euro majors buy rated Alongside the year ahead commodity outlook, Jefco upgrades Galp to buy on valuation - the former market darling, historically trading

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Jefco 2022 energy outlook - bullish gas, bearish oil, GALP up to buy