EUROPEAN MAJORS: We defer the timing of the oil market rebalance and lower our "new normal" for medium term Brent from $80/bbl to $70/bbl. EU Majors' business models continue to be challenged, most notably those with limited downstream businesses; greater differentiation is warranted. In some instances, management teams have the difficult task to review dividend policies. We think certain companies are over-distributing, in particular when removing the scrip where relevant, including BP, Repsol, and STL. We see RDS (with BG) and Total as having better positioned portfolios with more levers available to manage this more prolonged downturn in oil markets.