By Afiur
March 12, 2026
India has refused the International Energy Agency’s (IEA) call to release oil from its strategic petroleum reserves to calm global markets amid rising prices linked to the Iran conflict.
Oil prices surged past $100 a barrel as Middle East tensions intensified, raising fears of shortages, inflation and economic slowdown.
The world consumes about 100 million barrels of oil daily, meaning even 1 billion barrels of reserves equals barely 10 days of global demand.
Strategic petroleum reserves are government-controlled emergency oil stockpiles designed to protect economies during wars, disasters or supply disruptions.
The system is coordinated through the International Energy Agency, which enables countries to release oil collectively during major global supply shocks.
Modern strategic reserves were created after the 1973 Arab oil embargo, when prices quadrupled and many countries faced fuel shortages.
IEA member countries are required to hold emergency oil stocks equal to at least 90 days of net imports, forming a global energy security buffer.
The Middle East accounts for roughly 30% of global oil production, making disruptions in the region capable of rapidly destabilising global markets.
Around 20% of the world's oil supply passes through the Strait of Hormuz, making it one of the most critical and vulnerable shipping corridors.
Strategic reserves are typically stored in underground salt caverns or large tank farms, allowing governments to release crude quickly when needed.
Estimated reserves include China ~900m barrels, Japan ~480m, US ~400m, South Korea ~200m and India ~39m, while IEA countries hold about 1.2bn barrels.