Energy is a sector where the outlook sees investment banking strategists differ wildly.
In Citigroup's quarterly equity strategy update, the bank said it sees increased chances of a US soft landing supporting cyclical sectors, with the energy sector being the main exception.
Energy has been downgraded to 'underweight' alongside the UK, given a bearish house view on oil, with Citi forecasting Brent crude oil will come down to circa $70 a barrel, noting that the wider consensus still sees analysts embed US$85/bbl oil in their forecasts.
Over at Deutsche Bank, however, strategists felt the European energy sector could be the one exception to beat estimates in the coming earnings season.
"Despite the rise in oil prices by over 20% in Q3, full year revisions for the sector were negative (-4%). We expect oil prices to remain elevated and to lead to positive earnings surprises," they said.