NEW DELHI: Crude oil prices are likely to stay higher for longer due to the disruption caused by the longer-than-expected Middle East crisis, ADB Chief Economist Albert Park has said.“With a higher oil price expectation, we actually have it as USD 96 per barrel as average for 2026 as per the new reference scenario. It should stay elevated at USD 80 per barrel in 2027. So, our idea is that the oil prices are likely to stay higher for longer,” Park said.Future prices are showing higher prices farther out into next year than they did before, he said.However, he added, “We have also seen always a kind of a premium of the spot market prices and the nearby futures market because there is such a shortage currently.”Speaking about the impact of the ongoing West Asia crisis on India, Park said it is going to shave off 0.6 per cent from the country’s GDP growth, bringing it to 6.3 per cent, and also stoke inflation significantly in the current financial year.The Asian Development Bank (ADB) in April projected India’s GDP growth to remain “robust” at 6.9 per cent in the current fiscal, and rise to 7.3 per cent in the next fiscal, driven by strong domestic demand.With regard to inflation, ADB had projected 4.5 per cent for the current fiscal.
