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Oil Prices
Asia's first defences against energy shocks from the Iran war are running short and a more consequential second wave of impacts is beginning to hit. When the war started, governments scrambled to adapt to the closure of the Strait of Hormuz, a critical artery for energy flowing to Asia. They made difficult trade-offs: saving power at the risk of slowing businesses, prioritising gas for households at the risk of fertiliser production and dipping into energy stockpiles for temporary relief. But these measures were based on the war lasting only a short time, allowing a quick resumption of energy flows. That has not happened. With no clear end in sight, the fuel crisis is now rippling across economies. Airfare costs, shipping rates and utility bills are climbing, jeopardizing economic growth. About 8.8 million people are in danger of being pushed into poverty and the conflict may cause USD 299 billion in economic losses to the Asia-Pacific region, according to the United Nations ...
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 told PTI in an interview. Future prices are showing higher prices farther out into next year than they did before, he said. However, he said, "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 Middle East 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 Develop
