Oil prices could fall to $30 per barrel by 2027
Analysts at JP Morgan predict that a supply glut could drive Brent oil prices down to $30 per barrel by 2027. This will happen amid falling oil prices this year and peace talks regarding Ukraine.
This year, Brent oil prices have decreased by 14% and are currently trading at approximately $62.59 per barrel. The market is also watching the results of renewed negotiations between the US and Ukraine for a peaceful resolution of the situation. It is expected that any progress in peace talks could impact the energy market, particularly through possible easing of sanctions against Russia.
Despite oversupply concerns, analysts do not currently expect oil prices to drop to $40 in the short term, although ample supply from OPEC+ and US producers could temporarily lower market quotations.
Goldman Sachs also forecasts that excess supply will continue to drive prices down. According to their estimates, WTI Crude could average $53 per barrel in 2026. Daan Struyven from Goldman Sachs stated that now is the time for investors to bet on price declines.
The oil supply market expects 2026 to be the peak of volume increases, where the glut could reach 2 million barrels per day. Meanwhile, market stabilization is forecasted for 2027.
Significant changes have also occurred in the Russian oil market, with shipment volumes falling to an annual low. Countries such as China, India, and Turkey have reduced their purchases, which has already forced Russia to lower its oil prices to psychological levels.
| Company Forecasts | Price per barrel (USD) |
|---|---|
| JP Morgan (2027) | $30 |
| Goldman Sachs (2026) | $53 |
