Global Oil Crisis: India welcomed the release of 400 million barrels of oil from IEA’s emergency reserves.

Global Oil Supply Stability: Due to the ongoing fierce conflict in West Asia, there is a possibility of a huge rise in fuel prices around the world. To solve this global crisis, the International Energy Agency (IEA) has taken a big and historic decision to release its emergency oil reserves in the market. The Government of India has welcomed this step wholeheartedly, saying that it will be helpful in reducing supply bottlenecks. India continues to commit to working closely with the international community and partners to maintain global oil supply stability.

IEA’s big decision and India’s support

The global supply of crude oil has been badly affected due to the Iran war, in view of which the 32 member countries of IEA have agreed to release 400 million barrels of oil. Welcoming this decision, India has said that it is closely monitoring the energy market conditions and developments in West Asia.

The government believes that this coordinated action is the need of the hour to bring market stability and prevent prices from spiraling out of control. India is an important associate member of the IEA and is ready to actively participate and provide all possible support in international energy cooperation to maintain global energy security.

Strait of Hormuz and supply crisis

Due to this conflict, which started on February 28, oil exports through the Strait of Hormuz have fallen drastically, which is now only 10 percent of what it was before. This route handles about 25 percent of the world’s maritime oil trade, which can easily be estimated from its importance.

According to the data of the year 2025, about 20 million barrels of oil used to pass through this route every day, which is now in great crisis due to the war. According to the IEA, there is no effective alternative to this route, due to which the risk of energy crisis across the world has deepened.

A rare step in the history of IEA

This is only the sixth time since the IEA was formed in 1974 that such a coordinated emergency oil reserve release decision has been taken. Earlier, such special steps had been taken by the international community twice during global energy crises in the years 1991, 2005, 2011 and 2022.

IEA member countries currently have a total of more than 1.2 billion barrels of emergency oil reserve reserves that are only withdrawn in times of crisis. Apart from this, industries also have additional stock of about 60 crore barrels which is mandatorily kept as per government rules.

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An effort towards peace and stability

Executive Director Fatih Birol called a special meeting of the member countries, assessed the serious situation of the market and everyone agreed on this major decision. The move is expected to provide relief to oil producers who had reduced their production due to the war and severe supply shortage.

For developing countries like India, stability in oil prices is essential to reduce the burden on the country’s economy and the pockets of the general public. It is expected that with the arrival of these reserves in the market in the coming days, the disruptions in global oil trade will be reduced to some extent.