Crude prices expected to remain elevated in medium term: HDFC Securities

Global crude oil prices are expected to remain elevated in medium term, said HDFC Securities.

Accordingly, the brokerage house’s report, cited that Brent crude price which is currently at more than $75 per bbl has been driven by recovery in global demand with opening up of economies.

“The US was hit by Hurricane Ida in July end, which has resulted in disruption of production from Gulf of Mexico (GoM) of 1.7mb per day in August. The IEA expects supply from GoM to normalise by Q4CY22,” it said.

“With crude oil and product inventory in lower half of the five-year range and EIA estimating global crude oil supply growth to lag demand growth in 2021 as economy global recovery continues to gather pace, we see an upside risk to crude oil prices.”