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The Group of Seven (G7) countries have agreed to coordinate the release of 100 million barrels of crude oil and refined products over four months as energy prices remain under pressure from supply disruptions. Announced on October 2, the plan includes a substantial diesel release within the first 20 days and will be coordinated through the International Energy Agency (IEA). The G7 said the move aims to stabilise supplies and reduce price shocks.
Where Does Emergency Oil Come From?
There is no single global emergency oil reserve. Strategic petroleum reserves are held separately by individual countries.
According to estimates cited by Mint from the US Energy Information Administration, China had the largest estimated strategic oil inventory at about 1.492 billion barrels in the second quarter of 2026. The United States was estimated at 321 million barrels, followed by Japan at 187 million barrels. India’s estimated strategic inventory stood at about 21 million barrels.
These figures are not directly comparable because countries differ in reporting stocks. China’s inventory is partly estimated.
Who Decides When Oil Is Released?
The IEA coordinates collective action but does not own emergency oil. Individual governments decide whether and how reserves are released under national rules.
In the United States, the Strategic Petroleum Reserve is controlled by the Department of Energy. India’s strategic crude is held in underground facilities operated by Indian Strategic Petroleum Reserve Ltd (ISPRL), with government mechanisms determining releases during supply disruptions.
The G7 decision represents coordinated national stock releases rather than oil coming from a single G7 reserve.
Why India’s Oil Imports Are Rising?
India remains heavily dependent on imported crude, making disruptions in producing regions and shipping routes important for refiners. Yet Indian imports increased in September despite the wider energy crisis.
According to provisional tanker data, shipments from Iraq, Saudi Arabia, Kuwait and Qatar increased in September. Gulf suppliers used ship-to-ship transfers to move crude through the Strait of Hormuz, helping maintain supplies.
At the same time, Russian crude flows to India came under pressure for a second consecutive month. Competition from Chinese refiners and tighter Russian availability were cited as factors. India has therefore been adjusting its supply mix rather than relying on a single source.
What It Means For India?
The developments highlight the importance of strategic reserves and routes. India’s first-phase petroleum reserve system has underground facilities at Visakhapatnam, Mangaluru and Padur, while additional storage capacity has also been approved.
The G7 release may add barrels to global markets, but its effect will depend on refinery capacity, shipping routes, fuel inventories and diesel availability. The episode shows why emergency oil security remains a national responsibility, even when countries coordinate through the IEA.