Economists at Danske Bank discuss Oil outlook.
If the demand outlook weakens further, we expect OPEC+ to make more output cuts. US could also start to replenish strategic reserves.
We look for Brent to average $80/bbl the coming year.
OPEC+ looks to have a preference for Brent to trade in the $80-110/bbl range.
US will likely start to buy Oil for its strategic reserves if prices fall much below $70/bbl.