Oil prices have rallied along with the rest of the energy space and in the bigger picture the broad commodity space. According to strategists at Danske Bank, hawkish central banks are set to weigh on oil prices. Consequently, they still forecast Brent to average $75 throughout the year.

More supply from OPEC+ and rebound in USD to pull prices down again

“Demand may be nearing a peak since central banks are likely to contemplate tightening monetary policy next year.” 

“Prices are above our forecast for this year, but we think it will be temporary. More supply from OPEC+ and a rebound in USD should pull prices down again.”

“We keep our forecasts unchanged. Medium-term past years’ of lower investment will keep prices elevated. We expect Brent to average $75bbl in 2022 and $80/bbl in 2023.”