Fitch Solutions Predicts Oil Prices to Drop by 2027
Fitch Solutions has forecasted a decline in oil prices over the next few years. The firm expects the average annual price of Brent crude to drop to $71 per barrel in 2027, down from $83 this year. For WTI crude, the forecast is $79 in 2026 and $68 in 2027. Meanwhile, the OPEC basket is projected to fall from $87 in 2026 to $70 in 2027.
The report highlights recent pressure on Brent crude prices, partly due to discussions about resuming shipments through the Strait of Hormuz following a potential agreement between Iran and Oman. On August 5, Brent futures closed at $79.40 per barrel, marking a 12.5% weekly decline, while Dated Brent fell 8.4% to $83.50 per barrel.
Fitch Solutions suggests that transport through the Strait of Hormuz could be restored by the third quarter of 2026 under its base-case scenario. However, the firm warns of high risks, including possible delays in implementing any agreement, mine clearance operations, and the actions of the Houthis in the Red Sea.
The company anticipates continued volatility in oil prices due to these uncertainties, noting that the full recovery of oil transport will depend on multiple factors, including the reactions of shipowners, chartering companies, operators, and insurers.