In light of the ongoing supply problems brought on by the Iran war, India applauded the International Energy Agency’s (IEA) decision on Wednesday to release emergency oil inventories.
According to an official, the government is keeping a careful eye on how the world’s energy markets are changing, especially in the Middle East.
According to the official, India is prepared to support global market stability in line with the IEA’s efforts by taking appropriate action when needed.
India actively participates in global energy cooperation and is an associate member of the International Energy Agency (IEA).
The IEA members decided on Wednesday to release 400 million barrels of oil from the emergency stocks of 32 member nations in order to alleviate disruptions in the oil markets, a major development amid the ongoing West Asia crisis.
The emergency inventories will be made accessible to the market over a period of time that is suitable for each member nation’s unique circumstances, and some nations will add more emergency measures.
Over 1.2 billion barrels of emergency supplies are kept by IEA members, while an additional 600 million barrels of industry inventories are stored under government mandate.
Since the IEA was founded in 1974, there have been six coordinated stock releases. There have been prior collective actions in 1991, 2005, 2011, and twice in 2022.
The IEA claims that an extraordinary meeting of IEA Member governments, called by IEA Executive Director Fatih Birol to evaluate market conditions amid the Middle East conflict and explore options to address supply disruptions, led to the decision to take emergency collective action.
Oil flows through the Strait of Hormuz have been hampered by the Middle East crisis, which started on February 28. As a result, export volumes of crude and processed products are currently less than 10% of pre-conflict levels.
Due to this, a significant quantity of output is being shut down or reduced by operators around the region.
In 2025, the Strait of Hormuz saw an average daily flow of 20 million barrels of crude oil and oil products, or almost 25% of the global seaborne oil traffic.
According to the IEA, there are few ways for oil flows to avoid the Strait of Hormuz.
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