International Energy Agency (IEA)

International Energy Agency (IEA)
  • Context:

  • The International Energy Agency (IEA) has proposed the largest coordinated release of oil from strategic reserves in its history to stabilize soaring crude prices amid the U.S.-Israel war with Iran.

  • If approved, this emergency release would surpass the previous record of 182 million barrels injected into the market in 2022 following the Russian invasion of Ukraine.

  • India has officially welcomed this intervention to mitigate global supply disruptions

  • About the IEA:

  • The IEA family comprises 32 Member countries, 13 Association countries, and 5 Accession countries.

  • Notably, India is an Association country, not a full member.

  • Membership Conditions:

  • Full membership is highly restricted.

  • A candidate country must first be a member of the OECD (Organisation for Economic Co-operation and Development).

  • Strategic Reserves Mandate:

  • Members are strictly required to maintain crude oil and/or product reserves equivalent to 90 days of the previous year's net imports.

  • Additionally, they must have a national demand restraint programme capable of reducing oil consumption by up to 10% during severe global supply shocks.

  • Key Reports:

  • The IEA regularly publishes authoritative global data via its analysis portal, including the Oil Market Report, Energy Technology Perspectives, and its flagship World Energy Outlook (WEO).