Wells Fargo Boosts Oil Price Targets Amid Supply Disruptions

Wells Fargo Investment Institute has raised its oil price targets for 2027 due to ongoing supply disruptions and inventory rebuilding needs. The institute increased its year-end 2027 target for West Texas Intermediate crude to $75-$85 per barrel from $70-$80, while the target for 's moved to $80-$90 per barrel from $75-$85.

The analysts at Wells Fargo expect supply disruptions to ease through 2027 but note that ongoing closure risks will continue to add a premium to each barrel. They anticipate countries rebuilding depleted energy inventories as supply conditions normalize.

The analysts also warned of intensified inflation pressure from persistent geopolitical risk and business technology spending, leading them to predict additional interest rate increases from the Federal Reserve. This, in turn, is expected to slow global economic growth.