London Markets: BP is JPMorgan’s top Europe oil pick as FTSE 100 rallies

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A general view of the BP ETAP (Eastern Trough Area Project) oil platform in the North Sea.

BP was rated JPMorgan Cazenove’s top oil pick in Europe, with the broker citing the energy giant’s project pipeline.

“Strong project delivery, falling gearing and a clear CEO succession plan suggest a positive risk/reward,” the broker said in reiterating an overweight call and adding it to its European Analyst Focus List. BP BP, +1.51% BP, +1.69%  shares edged up 0.7% even as oil prices CL.1, +2.04%   fell.

The same broker also has an overweight on fellow energy giant Royal Dutch Shell RDSA, +1.63% RDSB, +1.76%, which gained 1.2%.

It separately upgraded Equinor EQNR, +0.95%  to overweight but downgraded OMV OMV, +0.98%  to neutral.

The FTSE 100 UKX, +1.24% meanwhile surged over 1%, gaining ground after the much-better-than-anticipated U.S. jobs report. The U.S. added 266,000 jobs in November.

FTSE 100 companies generated 23.5% of their revenue last year from the U.S., according to FactSet.

Ahead of Friday’s final debate between Prime Minister Boris Johnson and Labour leader Jeremy Corbyn, the pound GBPUSD, -0.2812%  drifted lower to $1.3123 from $1.3159.