Brief Context
Context India is not going to join the International Energy Agency (IEA) initiative to release strategic oil reserves as part of an effort to cool oil prices. About India is the worlds third-largest oil-importing and consuming nation, and has 5.33 million tonnes of underground strategic reserves. But they are only 80% filled currently.
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Syllabus: GS2/IR; GS3/Economy
Context
- India is not going to join the International Energy Agency (IEA) initiative to release strategic oil reserves as part of an effort to cool oil prices.
About
- India is the world’s third-largest oil-importing and consuming nation, and has 5.33 million tonnes of underground strategic reserves. But they are only 80% filled currently.
- Due to the West Asia conflict the crude prices jumped close to USD 120 per barrel, the highest in four years.
- G7 nations are due to discuss the possible release of oil reserves to calm markets.
- India is not a full member of IEA and does not have an obligation to follow the mandate of the international body.
India’s Oil Imports
- India imports nearly 88% of its crude oil requirements from around 41 countries.
- Roughly half of those supplies in February passed through the Strait of Hormuz.
- In February 2026, India received 2.8 million bpd crude, accounting for 53% of total imports, from Iraq, Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.
- As of early 2026, Russia remains the largest supplier of crude oil to India, with Saudi Arabia and Iraq following closely as key suppliers.
International Energy Agency (IEA)
- Established: In 1974.
- The IEA’s founding members were Austria, Belgium, Canada, Denmark, Germany, Ireland, Italy, Japan, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland, Türkiye, United Kingdom, and the United States.
- Reason: It was created when major oil-exporting countries drastically reduced oil supplies, causing severe economic disruptions in industrialized nations.
- Mandate: IEA’s original mandate was to ensure that oil supplies were kept stable, and potential disruptions in future were anticipated and prevented through timely action.
- It also developed an elaborate mechanism to deal with oil emergencies in future, making it mandatory for every member country to maintain certain minimum strategic stocks of oil.
- Members: The membership was kept open only for OECD countries.
- There are now 33 full members with Colombia being inducted as 33rd members recently.
- Associate Members: In 2015, IEA opened the doors for non-OECD countries to become associate members.
- The associate members participate in the policy discussions and activities, but do not have decision-making rights.
- India became an associate member in 2017. There are 13 associate members right now.
Organisation for Economic Co-operation & Development (OECD)
- The OECD is an intergovernmental organisation that promotes economic development, policy coordination, and global cooperation.
- Motto: “Better Policies for Better Lives.”
- Established in 1961, succeeding the Organisation for European Economic Co-operation (OEEC).
- Headquarters: Paris, France.
- Membership: 38 member countries (mainly developed economies). India is not a member.
Source: BT