Wells Fargo Investment Institute raised its 2027 price targets for West Texas Intermediate and Brent crude, pointing to ongoing supply disruptions and the need to rebuild depleted inventories. The firm still expects prices to ease from recent highs, but not by as much as it previously forecast.
Wells Fargo Investment Institute raised its year-end 2027 target for West Texas Intermediate crude to $75-$85 per barrel, up from $70-$80. Brent crude's target moved to $80-$90 per barrel, up from $75-$85.
The institute's analysts cited ongoing supply disruptions and inventory rebuilding needs behind the revision. They expect supply disruptions to gradually ease through 2027, but ongoing closure risks will keep adding a premium to each barrel. They also anticipate countries will rebuild energy inventories from multi-year lows as supply conditions normalize.
According to Investing.com: "We expect prices to subside from recent highs but to remain above our previous targets", the analysts said.
The institute also flagged persistent geopolitical risk and business technology spending as forces likely to intensify inflation pressure. As a result, Wells Fargo expects the Federal Reserve to respond with additional interest rate increases, which should slow global economic growth. Rising borrowing costs, reduced purchasing power, elevated fuel expenses, and fading fiscal support are also expected to slow business technology spending, which the institute described as a strong U.S. economic growth driver.
Source: Investing.com
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