Philippines wins backing for ASEAN oil reserve initiative
IEA chief Fatih Birol said oil stockpiles could help countries manage supply disruptions as Middle East tensions escalate.
The Philippines’ drive to establish regional oil reserves has drawn support from International Energy Agency (IEA) executive director Fatih Birol, who commended the government during Singapore International Energy Week.
Oil stockpiling is a priority for the Philippines during its 2026 ASEAN chairmanship. The initiative took on greater urgency when the global oil crisis broke out in late February. Birol said reserves were important for managing interruptions to supply, particularly amid worsening tensions in the Middle East.
Geopolitical tensions effectively shut the Strait of Hormuz, through which roughly a fifth of global oil and gas supplies normally pass. IEA figures show that, before the crisis, Southeast Asia sourced about 60 per cent of its crude oil imports from the Middle East, along with a third of its gas imports.
Birol said he did not foresee a return to pre-war conditions in energy markets. He called for countries to rethink energy strategies and partnerships and consider different fuel and technology choices. He also raised concerns that the crisis could push up food prices in the coming months, alongside surging energy costs, particularly diesel.
