India will not be releasing its strategic reserves in global markets, sources told NDTV Profit, even as the G7 is considering the release of emergency reserves in a bid to stabilise the energy market amid the US-Iran war.
The clarification, from the persons privy to the development, comes amid reports of the G7 holding talks to release crude barrels from emergency reserves in collaboration with the International Energy Agency.
G7, or the Group of 7 countries comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union, is expected to release around 400,000 million barrels, the persons said. Notably, India is not a member of the grouping.
Notably, India is a not a member of the G7 or the IEA.
As per reports, three G7 nations, including the US, have voiced their support for releasing the emergency reserves. Finance Ministers of G7 are set to engage in a call with IEA Executive Director Fatih Birol to assess the effects of Iran's war with the US and Israeli forces.
Crude oil prices spiked more than 25% on Monday, reaching their peak since the middle of 2022 owing to notable suppliers cutting down on outputs and concerns of extended shipping interruptions becoming prevalent in the market, spurred by the conflict ramping up between the countries. Brent, the global crude benchmark, hit $120 a barrel before correcting to around $100 levels.
Emergency oil reserves, notably, were created as part of the IEA's establishment in 1974. It was in response to the Arab oil embargo with regards to Organization of Arab Petroleum Exporting Countries (OAPEC) members, led by Saudi Arabia, stopping oil shipments to the countries that supported Israel during the Yom Kippur War.
This had led to fuel shortages and significant price hikes across the globe.
Members of the IEA are obligated to maintain strategic reserves within a collaborative framework that aims to address serious interruptions in oil supply.
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