Key Takeaways
The recent surge in European natural gas prices is far ahead of our expectation, driven primarily by robust Asian demand and moderating supply.
We believe some of the tailwinds will taper off over the next few months, but record-low gas inventory level in Europe ahead of the peak winter season places the market in a vulnerable position.
We believe Equinor and OMV are well-placed to benefit from strong European gas prices, but we favor Repsol due to its relatively cheaper valuation and leverage to global gas prices.
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