<div id="readability-page-1"><div>** Analysts at J.P.Morgan say European oil companies are &#34;precariously poised&#34; going into the new year, pointing to their &#34;full&#34; valuation and oil and gas oversupply ** Valuations and earning expectations are now full, the broker notes, as the companies' share prices saw the strongest positive decoupling from oil prices in 25 years and a weaker USD pushed energy demand from emerging markets ** An international oil oversupply and a possible Ukraine-Russia peace deal also call for stock selectivity and caution, JPM adds ** It double downgrades the Italy's Eni to &#34;underweight&#34; from &#34;overweight&#34; after one of the best sector performances this year as EPS outlook weakens and debt reduction winds down** The broker moves TotalEnergies to &#34;neutral&#34; from &#34;overweight&#34;, mainly as it prefers Shell among &#34;supermajors&#34;, even as Total's multi-energy growth capacity shields it in the long-term ** Shell and Repsol remain JPM's only &#34;overweight&#34; picks, with the broker lauding the former for its &#34;superior FCF and resilience&#34; and the latter as a &#34;standout EU diesel hedge&#34;</div></div>

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J.P. Morgan analysts express caution on European oil companies due to full valuations and oversupply concerns. They downgrade Eni to "underweight" and move TotalEnergies to "neutral," preferring Shell and Repsol for their resilience and diesel hedge. The analysis highlights the impact of a weaker USD and potential Ukraine-Russia peace deal on energy demand and stock selectivity.

JPM cautious on European oil players into 2026 on valuation, oversupply