Liverpool are ahead of Chelsea and Manchester City for the Champions League crown.
The Reds beat Atletico Madrid 2-0 at Anfield to secure four straight wins in the group stage and qualify for the next round of the UEFA Champions League.
Owen expects his former club to have a decent run in the competition this season.
He believes Chelsea and Manchester City are the biggest threats even though Liverpool are the favourties to win the European trophy this time.
Owen told BT Sport: ‘I think English football and the Premier League is so far ahead of everyone else at the moment and getting even stronger.
‘We’ve been ahead for a few years anyway and then we’ve taken the two best players in the Italian league in Ronaldo and Lukaku.
‘Lionel Messi’s gone to a weaker league so the Spanish league has got weaker. I can never really take the French league as seriously as maybe I should.
‘We’re taking the best managers as well. I think the biggest dangers to Liverpool are probably Man City and Chelsea.
‘You look at the Anfield factor, I just can’t get that out of my head. Good luck going there in the second leg of a European tie. They are almost unbeatable at Anfield.
‘You’d have to say that Liverpool are favourites.’