NEW DELHI: Crude oil prices are likely to remain high for longer due to the disruption caused by the protracted Middle East crisis than expected, said Albert Park, chief economist at the Asian Development Bank.“With oil prices forecast to rise, we actually have US$96 per barrel as an average for 2026 under the new reference scenario. It should remain high at US$80 per barrel in 2027. So, our idea is that oil prices are likely to remain high for longer,” Park said.He said future prices show higher prices next year than they were before.However, he added: “We have also always seen some sort of premium in spot market prices and the near futures market because there is such a shortage currently.”Speaking about the impact of the ongoing West Asian crisis on India, Park said that it will cut 0.6 percent from the country’s GDP growth, reaching 6.3 percent, and will also stoke inflation significantly in the current fiscal year.The Asian Development Bank (ADB) in April forecast that India’s GDP growth would remain “strong” at 6.9 percent in the current fiscal year, rising to 7.3 percent in the next fiscal year, driven by strong domestic demand. Regarding inflation, the Asian Development Bank expected it to reach 4.5 percent in the current fiscal year.
