Based on current macro regime conditions and brent crude oil's historical behaviour in similar regimes, the model projects $114 by 2026-12-31 ( +7.3% from $106 today). The 68% confidence range is $78.76 to $149; the wider 95% range is $45.04 to $183. Methodology below the headline.
Brent Crude Oil Forecast 2026
Quantitative analysis from 6,337 observations of Brent Crude Oil history, joined to four universal macro regime classifications. Numbers are computed, not narrated.
Regime Scan[01/04]
Δ = divergence from +5.3% unconditional all-history average
Performance by Window[02]
| WINDOW | N | ANN RET | ANN VOL | RET/VOL | HIT % | TOTAL |
|---|---|---|---|---|---|---|
| 1Y | 253 | 62.82% | 50.67% | 1.24 | 51.6% | 62.55% |
| 3Y | 758 | 12.50% | 37.64% | 0.33 | 51.5% | 42.35% |
| 5Y | 1,264 | 9.04% | 39.02% | 0.23 | 53.0% | 54.16% |
| 10Y | 2,537 | 8.70% | 48.75% | 0.18 | 52.8% | 130.27% |
| All | 6,337 | 5.29% | 41.41% | 0.13 | 51.5% | 262.15% |
Annualized total return = (1 + total)^(1/years) - 1. Ret/Vol is the annualized return divided by annualized volatility (Sharpe-equivalent without risk-free subtraction). Hit % = pct of single periods that were positive.
Where We Are Now[03]
Forward Returns by Macro Regime[04]
How Brent Crude Oil has performed historically conditional on the prevailing macro regime. The current bucket is highlighted; +1Y averages drive the headline signal above.
| REGIME BUCKET | N | +30D | +90D | +1Y AVG | +1Y MED | HIT % |
|---|---|---|---|---|---|---|
| Low (<15) | 2,088 | 0.83% | -0.33% | 3.84% | -1.17% | 48.2% |
| Normal (15-25) | 3,032 | 1.68% | 4.89% | 10.48% | 5.39% | 59.1% |
| Elevated (25-40) | 940 | 3.93% | 9.75% | 20.55% | 10.13% | 66.3% |
| Extreme (>40) | 192 | 3.67% | 31.85% | 75.62% | 67.35% | 91.7% |
| REGIME BUCKET | N | +30D | +90D | +1Y AVG | +1Y MED | HIT % |
|---|---|---|---|---|---|---|
| Inverted (<0bps) | 768 | -0.17% | -0.19% | 6.47% | -1.92% | 44.1% |
| Flat (0-100bps) | 2,097 | 4.09% | 9.15% | 15.12% | 2.98% | 53.2% |
| Steep (>100bps) | 3,318 | 0.87% | 3.14% | 11.39% | 10.04% | 63.3% |
| REGIME BUCKET | N | +30D | +90D | +1Y AVG | +1Y MED | HIT % |
|---|---|---|---|---|---|---|
| Tight (<350bps) | 927 | 2.85% | 5.79% | 4.38% | -8.84% | 34.5% |
| Normal (350-500bps) | 1,394 | 0.42% | -0.04% | 2.00% | -3.42% | 45.1% |
| Stressed (>500bps) | 558 | 6.49% | 15.93% | 41.85% | 20.11% | 75.3% |
| REGIME BUCKET | N | +30D | +90D | +1Y AVG | +1Y MED | HIT % |
|---|---|---|---|---|---|---|
| Weak (bottom tercile) | 984 | 5.32% | 7.66% | 13.38% | 15.64% | 63.4% |
| Neutral (middle) | 1,213 | 2.12% | 9.49% | 15.05% | 3.72% | 60.1% |
| Strong (top tercile) | 2,571 | 0.11% | 0.26% | 3.56% | -6.62% | 41.5% |
Forward returns are forward-looking from each historical observation in the bucket; +252d corresponds to one trading year. Buckets with fewer than 5 forward-return observations are reported as n/a. These are conditional historical averages, not forecasts.
Lead-Lag Relationships[05]
For each universally-recognised leading indicator, the lag at which the daily-return correlation peaks. Positive lag means the anchor leads Brent Crude Oil; negative means it lags.
| ANCHOR | ROLE | PEAK LAG | PEAK CORR | ZERO-LAG | RELATIONSHIP |
|---|---|---|---|---|---|
| Initial Jobless Claims | Labor leader | +20d | 0.316 | -0.058 | leads target by 20d |
| Copper | Global growth proxy | 0d | 0.258 | 0.258 | coincident |
| Trade-Weighted Dollar | FX driver | 0d | -0.258 | -0.258 | coincident |
| HY OAS Spread | Credit risk leader | 0d | -0.254 | -0.254 | coincident |
| 10Y Treasury Yield | Discount-rate driver | 0d | 0.187 | 0.187 | coincident |
| VIX | Volatility leader | 0d | -0.130 | -0.130 | weak |
| Baa-10Y Spread | Credit risk (slow) | 0d | -0.088 | -0.088 | weak |
| 10Y-2Y Yield Spread | Recession leader | -7d | -0.027 | 0.025 | weak |
| NFCI | Financial conditions | +21d | 0.026 | 0.009 | weak |
| U-Mich Consumer Sentiment | Survey leader | 0d | 0.000 | 0.000 | weak |
Pearson correlation of daily returns over up to 25 years of overlapping history, searched across a ±60-day lag grid. Indicators classified as “weak” don't have meaningful predictive power at daily resolution; many of these (yield curve, NFCI, sentiment) lead at monthly/quarterly horizons instead.
Historical Analogs[06]
Periods where Brent Crude Oil sat at a similar percentile rank to today, with what happened over the next 30 / 90 / 252 trading days. Analogs are clustered to avoid double-counting nearby dates.
| DATE | VALUE | +30D | +90D | +1Y |
|---|---|---|---|---|
| Aug 12, 2022 | 103.7000 | -17.10% | -23.38% | -16.80% |
| May 12, 2022 | 108.0600 | 8.61% | -17.06% | -30.17% |
| Feb 11, 2022 | 97.5000 | 25.82% | 17.44% | -11.82% |
| Jul 7, 2014 | 108.7000 | -8.58% | -25.54% | -45.67% |
| Mar 11, 2014 | 108.3500 | 0.12% | -2.13% | -45.85% |
Worst Historical Drawdown[07]
Cross-Asset Correlations · 1Y[08]
Largest Single-Period Moves[09]
- Apr 22, 202050.99%
- Apr 2, 202035.20%
- May 5, 202024.80%
- Apr 3, 202020.21%
- Jan 2, 200919.88%
- Apr 21, 2020-47.47%
- Mar 31, 2020-22.62%
- Mar 9, 2020-22.52%
- Apr 9, 2020-19.79%
- Mar 18, 2020-18.52%
Calendar-Month Seasonality[10]
Average single-period return aggregated by the calendar month in which the period ended.
| MONTH | AVG RETURN | HIT % | N |
|---|---|---|---|
| January | 0.16% | 52.9% | 524 |
| February | 0.27% | 53.7% | 495 |
| March | -0.00% | 51.1% | 546 |
| April | 0.27% | 53.6% | 507 |
| May | 0.10% | 51.3% | 520 |
| June | 0.13% | 55.9% | 531 |
| July | 0.07% | 54.4% | 546 |
| August | 0.01% | 52.0% | 546 |
| September | -0.08% | 47.7% | 526 |
| October | -0.13% | 47.4% | 555 |
| November | -0.07% | 49.9% | 527 |
| December | -0.04% | 48.3% | 513 |
N = 6,337 OBS · GENERATED 2026-05-18 10:30Z
Forecast Approach
scenario weighted: We aggregate probability-weighted outcomes across active tracked scenarios, each with historical base rates and current heat scores. The projection above is the sample-weighted central estimate across current macro regime anchors; the scenario list below adds qualitative context.
Consensus source: Futures curve
Key Drivers & Risks
- •Supply disruptions
- •Demand growth
- •Dollar strength
- •Geopolitics
- •Weather
Historical Volatility
High: 20-50% annual swings common
Frequently Asked Questions
What factors could push Brent Crude Oil higher?▾
The primary drivers that tend to lift Brent Crude Oil depend on the current macro regime. Commodities sit at the intersection of monetary and physical reality. Oil and gas prices flow almost directly into headline CPI, while copper and iron ore track global industrial activity ahead of official releases. Tracking each complex alongside its supply signal (EIA inventories, rig counts, seaborne cargo flows) separates genuine demand moves from inventory-cycle noise. Convex tracks these drivers live across the Commodities category and flags when multiple forces align in the same direction. See the "Key Drivers & Risks" section on this page for the current list, and check the regime dashboard for how the macro backdrop is currently tilted.
What factors could push Brent Crude Oil lower?▾
The same transmission channels that drive Brent Crude Oil higher operate in reverse when conditions flip. The risk drivers listed above map directly to scenarios that, if triggered, would pull this metric in the opposite direction. Convex aggregates these into a scenario-weighted probability distribution rather than a point forecast, so the magnitude depends on which scenarios activate.
Where does consensus see Brent Crude Oil heading?▾
Rather than publish a point target that goes stale the day after release, Convex assembles consensus from the macro regime classification, active scenario probabilities, and historical base rates. Point forecasts from banks and strategists are worth reading for context, but they typically cluster around the consensus and miss the tail events that actually move markets. The scenario-weighted approach here captures that tail risk explicitly.
What is the historical range for Brent Crude Oil?▾
Historical ranges for Brent Crude Oil vary dramatically by regime. A level that is extreme in Goldilocks can be routine in Stagflation, and vice versa. The Historical Volatility section on this page describes the typical range and regime-specific behavior. For the full multi-decade history, visit the Brent Crude Oil chart page, which includes selectable time ranges up to five years and downloadable data.
How often is the Brent Crude Oil forecast updated?▾
This forecast page recalculates whenever the underlying data or regime classification changes, typically within hours of new data releases. The scenario probabilities refresh daily as the macro state is regenerated. Specific drivers listed on this page reflect the current state of the Convex regime engine, not static historical assumptions.
Is this forecast actionable for trading?▾
Convex forecasts are informational and educational. They describe probability distributions and regime-conditional paths rather than specific entry and exit levels. Traders and portfolio managers use them alongside other inputs including position sizing rules, risk management, and their own conviction calibration. They are not investment advice.
Get forecast updates for Brent Crude Oil and related indicators.
Forecasts are model-based projections derived from current regime classification, scenario probabilities, and historical patterns. They are not investment advice. All investments involve risk.