Wells Fargo Lifts Oil Price Targets Amid Supply Disruptions

Wells Fargo Investment Institute raised its crude oil price targets for 2027 due to ongoing supply disruptions and the need to rebuild depleted inventories. Analysts expect these disruptions to ease gradually throughout next year, although they anticipate lingering closure risks will continue to affect prices.

The institute lifted its year-end target for West Texas Intermediate (WTI) crude to a range of $75 to $85 per barrel from a previous range of $70 to $80. For Brent crude, the target moved to a range of $80 to $90 per barrel from a previous range of $75 to $85.

The analysts at Wells Fargo expect countries to rebuild their energy inventories from multi-year lows as supply conditions return to normal. However, they also anticipate that prices will retreat from recent highs while remaining above the institute's earlier targets throughout 2027.