India will not release strategic oil reserves as G7 considers emergency supply move
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India will not release its strategic oil reserves into global markets even as the Group of Seven considers tapping emergency supplies to stabilise energy markets amid the ongoing US-Iran conflict.
The clarification comes after reports that G7 countries are discussing the possible release of crude from emergency reserves in coordination with the International Energy Agency to address supply disruptions caused by the escalating conflict.
The Group of Seven comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union.
According to sources, the bloc could release about 400 million barrels of oil from emergency reserves. India is not a member of the G7 or the International Energy Agency.
Reports indicate that at least three G7 countries, including the United States, have supported the idea of releasing emergency reserves. G7 finance ministers are expected to hold discussions with International Energy Agency Executive Director Fatih Birol to assess the impact of the conflict involving Iran, the United States, and Israel on global energy markets.
Oil prices surged sharply on Monday amid concerns over supply disruptions and reduced output from major suppliers. Brent crude, the global benchmark, briefly rose to about 120 dollars per barrel, its highest level since mid 2022, before easing to around 100 dollars.
Emergency oil reserves were established when the International Energy Agency was formed in 1974 following the Arab oil embargo. During that crisis, members of the Organization of Arab Petroleum Exporting Countries, led by Saudi Arabia, halted oil shipments to countries supporting Israel during the Yom Kippur War, triggering fuel shortages and sharp price increases worldwide.
Members of the International Energy Agency are required to maintain strategic reserves as part of a coordinated system designed to respond to major disruptions in global oil supply.