Paris [France]: The International Energy Agency (IEA) has said that 400 million barrels of oil from its emergency reserves will soon start flowing to markets in Asia and Oceania in response to the disruptions resulting from the war in West Asia.
In a statement released by the IEA on March 15, the agency said that IEA member countries will make 400 million barrels of oil available to the market. This is the largest release in its history and is one-third of the grouping’s total holding of 1.2 billion barrels of government reserves.
This follows an announcement by the global energy watchdog on March 11.
“Individual implementation plans have been submitted to the IEA by Member countries. These plans indicate that stocks will be made available by IEA Member countries in Asia Oceania immediately, while stocks from IEA Member countries in the Americas and Europe will be made available starting from the end of March,” the agency said.
The Asia Oceania markets are led by countries like Japan, South Korea, and Australia. India is not a member country of IEA but its Associate Member and thus has no binding obligation to follow the IEA’s call for a stock release, unlike the 32 full member nations.
IEA Member countries unanimously agreed on March 11 to make 400 million barrels of oil from their emergency reserves available to the market.
The development comes three weeks after the United States and Israel launched strikes on Iran with Tehran launching retaliatory strikes on Israel and US military assets and energy facilities in Gulf countries. Iran has closed the vital waterway of the Strait of Hormuz, which has driven the prices of crude oil to over USD 100 per barrel. About one-fifth of the world’s oil is transported through the Strait of Hormuz.
Global observed oil stocks were 8 210 million barrels in January, their highest level since February 2021. The Organisation for Economic Co-operation and Development (OECD) accounted for 50%, Chinese crude stocks 15%, oil on water 25%, with the remainder in other non-OECD countries, the IEA stated.
Previously, on March 12, India, which is an IEA Associate Member and an active participant in international energy cooperation, welcomed the agency’s decision to release emergency oil stocks.
The Government of India, in a statement, said that it is closely monitoring the evolving situation in global energy markets, particularly in West Asia.
India stands ready to take appropriate measures, as necessary, to support global market stability in alignment with the efforts of the International Energy Agency, the release stated.
Also on March 12, in a video statement, IEA Executive Director Fatih Birol highlighted that the conflict has severely impacted global oil and gas markets, particularly through the Strait of Hormuz, and the decision was taken “to offset the supply lost through the effective closure of the Strait.
“He emphasised that the resumption of oil and gas transit through the Strait of Hormuz remains critical for long-term stability.
“IEA countries will be making 400 million barrels of oil available. I repeat, 400 million barrels of oil available to the market to offset the supply lost through the effective closure of the Strait. This is a major action aiming to alleviate the immediate impacts of the disruption in markets. But, to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz,” Birol said.
He noted that the decision was taken unanimously by IEA countries and is the largest ever release of emergency oil stocks in the agency’s history.The decision came amid the global energy supply disruption due to the operational blockage of the Strait of Hormuz amid the conflict in the region and following continuous dialogue with ministers from IEA member countries, key producers including Saudi Arabia and Brazil and major importers such as India and Singapore.
Gulf countries have cut total oil production by at least 10 million barrels per day. This follows attacks on energy infrastructure and a near-total stoppage of shipping through the Strait of Hormuz, with production cuts impacting Saudi Arabia, Iraq, UAE, Kuwait, and Qatar, according to the March 2026 IEA report.
The report from the global energy watchdog said that widespread flight cancellations in West Asia and large-scale disruptions to LPG supplies are expected to curb global oil demand by around 1 million barrels per day during March and April compared to previous estimates. “Higher oil prices and a more precarious outlook for the global economy pose further risks to the forecast. Global oil consumption is now set to increase by 640 kb/d y-o-y in 2026 – down 210 kb/d from last month,” the IEA reported.
The IEA oil reserve is designed to protect the world economy from sudden oil supply shocks. It is not one single giant tank, but a coordinated system of stockpiles held by individual member countries.
To be a member of the International Energy Agency (IEA), a country must legally commit to holding emergency oil reserves equivalent to at least 90 days of its previous year’s net imports.
The total IEA emergency stock currently stands at roughly 1.8 billion barrels, split into two categories. Government Stocks and Industry Stocks. About 1.2 billion barrels are owned directly by governments and stored in massive underground salt caverns or dedicated tank farms. About 600 million barrels are held by private companies (refineries and importers). By law, these companies must keep a minimum level of “working stock” that they are not allowed to sell unless the government gives the order.
IEA member countries sell their reserve oil to refineries and traders on the open market. By adding 400 million barrels of supply to the global market, the IEA is trying to prevent prices from skyrocketing further. (ANI)
