BUZZ-European Oil&Refining: - breakevens to fall, again - Barclays
** Barclays (LSE: BARC.L - news) expects most of the energy sector cos to cash break-even in Q3, seeing the sector reset to operate in a $50⁄bl world
** The broker expects cash breakevens to fall again (to $52 in Q3, down $4/bl q/q), and essentially in line with the avg oil price
** "Overall we expect sector earnings up 60$ y⁄y and 11$ q⁄q, with BP and Statoil (LSE: 0M2Z.L - news) set to deliver the strongest growth on our forecasts," it adds
** BP remains Barclays' top pick, it expects co to confirm its commitment to delivering the equivalent of a full cash div in 2018
** Kepler Cheuvreux says that the entire downstream business is set to generate material FCF and deserves higher valuation multiples
** Its analysts raise 2018-19 cashflow for European Big Oils in USD terms by 10 pct on avg and FCF by 35 pct
** They also up TPs on Big Oils by 14 pct, despite FX headwinds, and upgrade Total (LSE: 524773.L - news) , Shell (LSE: RDSB.L - news) and Repsol (Amsterdam: RP6.AS - news) to "buy"
** Regarding the refining stocks, Barclays sees refining margins on the rise with tighter diesel market
** It ups Neste (EUREX: 2114019.EX - news) (+2.8 pct) to "equal weight" on improved outlook and cuts Saras (-2.9 pct) to "underweight", seeing further upside limited
** Light crude for Nov. delivery is currently down 0.3 pct, at $51.5/bl, meanwhile Brent crude for Dec (Shanghai: 600875.SS - news) . delivery is down 0.2 pct, at $56.7/bl