Prashant Vashisht, senior vice-president and co-group head of corporate ratings at Icra Ltd, noted that any drop in crude prices is unlikely to continue. Once the Strait of Hormuz reopens, major oil importers in Europe and Asia will seek supplies from West Asia to rebuild stockpiles. This renewed demand should keep prices from falling sharply. The conflict earlier removed 11 to 12 million barrels of daily output, while releases coordinated by the International Energy Agency added roughly 400 million barrels. Restoring full supply levels could take several months.
