Wells Fargo Sees Brent Crude Price Drop to Below $80 in 2027

According to Wells Fargo, Brent crude oil prices are expected to drop below $80 per barrel from the second quarter of 2027. The bank forecasts a $79.30 average for the year, which is roughly 24% lower than the current price.

The quarterly path shows a decline in prices starting next spring, with Wells Fargo projecting $90.70 for the third quarter of 2026 and $92 for the fourth. However, it then forecasts a drop to $84 in the opening quarter of 2027, followed by $79 in the second quarter, $77.70 in the third, and $76.30 in the fourth.

The bank also expects weaker demand and easing supply pressures to bring relief from global inflation, which is expected to average 4% in 2027 as tighter financial conditions weigh on demand and supply pressures fade.

However, Wells Fargo cautions that the supply position remains fragile due to low inventories and limited refining capacity. The bank warns that persistent shortages would make it harder for its sub-$80 quarterly averages to be achieved.