European Energy "Postcard from North America" Patricot

Research evidence excerpt

European Energy "Postcard from North America" Patricot

Global Research

22 June 2026ab

European Energy Equities

Europe including UKPostcard from North America

Energy

Henri Patricot, CFA

Hormuz uncertainty dominates Analyst

We return from a week of marketing in the US and Canada, during which the conflict in henri.patricot@ubs.com

the Middle East and implications for oil & gas continued to drive a lot of the +33-14-888 3033

discussions. Despite the potential clearing event of the US and Iran signing a deal and oil Joshua Stone

prices pulling back, we sensed little urgency to increase positions in European Analyst

Energy. Many investors were concerned that the momentum could remain negative for joshua.stone@ubs.com

the sector in the very near-term as oil and gas flows via Hormuz return. Energy specialists +44-20-7901 5588

remain generally more positive on commodity prices and the sector than generalists Anna Kishmariya

though, on the view that the return to normal may not be entirely smooth. Analyst

anna.kishmariya@ubs.com

Oil: where do we settle? +44-20-7568 7999

For the oil price, the focus has shifted to the level at which prices are likely to settle this Nayoung Kim

year and next, rather than upside from current levels. Consensus appears to gravitate Analyst

towards a Brent price around $70/bbl post-conflict. Questions focused on how quickly nayoung.kim@ubs.com

+44-20-7568 4010

oil flows return, and how much of an inventory rebuild/expansion of strategic reserves

we are likely to see. The important role of China was another focus as investors try to Ellinor Cederstroem Palliotto

assess how quickly China could ramp up imports and whether there could be any lasting Associate Analyst

impact on oil demand. ellinor-cederstroem.palliotto@ubs.com

+44-20-7567 1823