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
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News In Short 09-03-2026
