The International Energy Agency (IEA) praised India on Wednesday after it welcomed the agency’s decision to release 400 million barrels of oil from emergency stocks as tensions escalate over the US-Israeli war in Iran, Reuters reported.
IEA Executive Director Fatih Birol said he was “pleased to read India’s statement supporting the IEA’s action to release oil stocks to address disruptions in global oil markets”.
India, an IEA member, earlier today welcomed the decision to release emergency crude to address concerns in global oil markets.
In a press release, the Press Information Bureau (PIB) said, “India, as an associate member of the International Energy Agency (IEA) and an active participant in international energy cooperation, welcomes the IEA’s decision to release emergency oil stocks amid prevailing supply shortages.” She added that the Indian government is closely monitoring the situation in the global energy markets, especially in the Middle East.
The statement further said that Delhi is ready to take “appropriate measures” as needed to promote global market stability in line with the IEA’s efforts.
The US-Israeli-Iran war is shaking global markets
The US and Israel launched strikes on Iran 12 days ago and there appears to be no sign of the conflict abating. As Tehran retaliated, its decision to target US bases in the Persian Gulf and Israel plunged the Middle East region into a wider military confrontation with ripple effects across industries and sectors.
Oil prices jumped to $120 a barrel on Monday, spooking traders and investors about the disruption ahead. In addition, Tehran’s Islamic Revolutionary Guard Corps (IRGC) has closed the Strait of Hormuz, a key waterway that accounts for one-fifth of the world’s oil supply.
Amid ongoing attacks in the Middle East, several energy companies have invoked force majeure, a legal term that excuses them from fulfilling their obligations in the event of an unexpected or extraordinary event.
Amid all these developments, global energy markets are likely to witness supply disruptions. The G7 group of nations met on Monday and agreed to take “necessary measures” to support global energy supplies. However, the meeting ended without any agreement.
IEA to release 400 million barrels of oil
In a statement released today, Birol announced that a collective decision was made to take emergency measures following a recent meeting. The aim of the meeting was to assess market conditions and consider available options for dealing with supply disruptions.
The IEA, which has more than 1.2 billion barrels of oil in emergency stocks, said the oil market was facing challenges of an unprecedented scale. The agency also has another 600 million barrels in industrial inventories held under government obligations.
