Developing Nations Face 5- to 30-Day Oil Buffers as Hormuz Blockade Exposes Reserve Gap
Updated
Updated · Al Jazeera English · May 12
Developing Nations Face 5- to 30-Day Oil Buffers as Hormuz Blockade Exposes Reserve Gap
5 articles · Updated · Al Jazeera English · May 12
Pakistan said its crude reserves cover just 5 to 7 days, while Indonesia, Bangladesh and Vietnam reported buffers of roughly 23 days to one month, exposing acute vulnerability in the current oil shock.
The shortages are being driven by the Strait of Hormuz blockade and fuel-price spikes from the US-Israel war on Iran, with import-reliant developing economies least able to absorb the hit.
IEA members must hold 90 days of imports and had 1.8 billion barrels in public and mandated private stocks in March, but more than 70% of the world’s population lives in countries without sufficient buffers, according to Rystad Energy.
Asia Pacific is expected to take one of the biggest economic blows; the Asian Development Bank last month cut its 2026 developing-Asia growth forecast to 4.7% from 5.1%.
Analysts say the crisis is likely to intensify calls for broader stockpile coordination beyond the OECD-led IEA, alongside longer-term investment in renewables and regional energy-sharing arrangements.
With the West's energy agency losing influence, who will write the new rules for global energy security?
Will developing nations be forced to choose between immediate survival and long-term green energy investments?
As AI's immense power thirst grows, is the world prepared for two simultaneous energy crises?