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India Backs IEA's Emergency Oil Release to Stabilize Global Markets

India has welcomed the International Energy Agency's decision to release emergency oil stocks to address supply disruptions caused by the conflict in the Middle East. The IEA members agreed to release 400 million barrels from their strategic reserves, marking the sixth such collective action in the agency's history. The conflict has severely impeded oil flows through the critical Strait of Hormuz, reducing exports to less than 10% of pre-conflict levels. India, an associate IEA member, stated it is monitoring the situation and is ready to take measures to support global market stability.

Key Points: India Welcomes IEA Emergency Oil Stock Release

  • IEA releases 400M barrels from reserves
  • India is an associate member
  • Strait of Hormuz flows severely disrupted
  • Sixth collective action in IEA history
  • Stocks to be released per national circumstances
2 min read

India hails IEA decision to release emergency oil stocks to rein in prices

India supports IEA's decision to release 400M barrels from emergency reserves to address supply disruptions from the Middle East conflict.

"India stands ready to take appropriate measures... to support global market stability - Official"

New Delhi, March 11

India on Wednesday welcomed the International Energy Agency's decision to release emergency oil stocks amid the prevailing supply disruptions due to the Iran war.

The government is closely monitoring the evolving situation in global energy markets, particularly in the Middle East, an official said.

India stands ready to take appropriate measures, as necessary, to support global market stability in alignment with the efforts of the IEA, the official added.

India is an associate member of the International Energy Agency (IEA) and an active participant in international energy cooperation.

In a significant development amid the ongoing West Asia crisis, the IEA members agreed on Wednesday to release 400 million barrels of oil from the emergency reserves of 32 member countries to address disruptions in oil markets.

The emergency stocks will be made available to the market over a timeframe that is appropriate to the national circumstances of each member country and will be supplemented by additional emergency measures by some countries.

IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation.

The coordinated stock release is the sixth in the history of the IEA, which was created in 1974. Previous collective actions were taken in 1991, 2005, 2011, and twice in 2022.

According to the IEA, the decision to take emergency collective action was made following an extraordinary meeting of IEA Member governments, convened by the IEA Executive Director Fatih Birol to assess market conditions amid the conflict in the Middle East and consider the options to address supply disruptions.

The conflict in the Middle East, which began on February 28, has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10 per cent of pre-conflict levels.

This is forcing operators across the region to shut in or curtail a substantial amount of production.

An average of 20 million barrels per day of crude oil and oil products transited the Strait of Hormuz in 2025, or around 25 per cent of the world's seaborne oil trade.

Options for oil flows to bypass the Strait of Hormuz are limited, said the IEA.

- IANS

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Reader Comments

P
Priya S
Good step, but we need a long-term solution. India should fast-track its renewable energy plans and reduce this dependency on imported oil. Every crisis is a reminder.
R
Rohit P
Finally some action! The prices were becoming unbearable. Hope this coordinated release is substantial enough to make a real difference. Our economy can't afford another prolonged oil shock.
S
Sarah B
While I appreciate the global cooperation, I'm concerned this is just a temporary fix. The real issue is the conflict itself. The international community needs to focus on de-escalation and peace talks.
V
Vikram M
Strategic reserves are for emergencies, and this certainly qualifies. 25% of seaborne oil through Hormuz is blocked! This action was necessary. Kudos to India for being proactive in the IEA.
K
Karthik V
A good diplomatic move by India to align with IEA. It shows we are a responsible global player. However, I hope the government ensures the benefit is passed to consumers and not absorbed by oil marketing companies.

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