Asian Governments Expand Oil Reserves as Hormuz Tensions Revive $15.5 Billion Stockpiling Push
Updated
Updated · CNA · Jul 8
Asian Governments Expand Oil Reserves as Hormuz Tensions Revive $15.5 Billion Stockpiling Push
3 articles · Updated · CNA · Jul 8
Summary
India, Indonesia, the Philippines, Pakistan and Vietnam are advancing new storage terminals and refinery plans to shield their economies from another Strait of Hormuz-style oil disruption.
3.8 million barrels a day released from inventories since the war began has helped cushion global supply, underscoring why emerging Asian importers want strategic reserves similar to those in developed economies and China.
US$7.5 billion would be needed for India alone to reach a 90-day reserve level, while Indonesia and Vietnam would need another US$8 billion just to buy crude, before annual carrying costs of US$1.5 billion to US$3 billion.
US$600 million a year for India’s main EV program is far below the cost of maintaining reserves, and China’s electric vehicles already displace about 1.8 million barrels a day of oil demand.
Bloomberg Opinion argues the stockpiling drive may deepen oil dependence unless governments pair it with faster electrification, reducing the crude demand that makes such emergency buffers necessary.
Asia is spending billions on oil reserves. Is this a wise security investment or a costly delay of an all-electric future?
As Asian drivers flee volatile oil prices for EVs, are their countries simply trading dependency on the Middle East for dependency on China?
Asia’s $3.36 Billion Monthly Energy Shock: The 2026 Strait of Hormuz Crisis and Its Global Fallout
Overview
In early March 2026, the closure of the Strait of Hormuz triggered an immediate and severe disruption to global energy supplies, quickly escalating into a major oil crisis. This event not only caused a sharp shortfall of about 15 million barrels of oil per day but also affected other vital exports from the Persian Gulf. The crisis was expected to have lasting effects, with a significant portion of oil remaining unavailable even after the strait reopened, due to various recovery challenges. These developments highlighted the vulnerability of global energy markets and the far-reaching impact of disruptions at this critical chokepoint.