ADB flags India’s oil vulnerability as tensions rise

Asian Development Bank (ADB) on Friday warned that India’s limited crude oil reserves of about 100 million barrels — sufficient for only 40-45 days of consumption — leave the country particularly vulnerable to supply disruptions through the Strait of Hormuz amid the ongoing war in West Asia.

- ASIT RANJAN MISHRA

“In Asia, reserve adequacy varies widely among major importers. Japan and the Republic of Korea, both International Energy Agency (IEA) members, meet the 90-day stock requirement and can join coordinated emergency releases. PRC (People’s Republic of China) and India, outside the IEA system, rely on their own stockpiles. PRC’s roughly 401 million barrels provide 3-4 months of cover, while India’s 100 million barrels give only 40-45 days, leaving it especially vulnerable to disruptions in the Strait of Hormuz,” ADB Chief Economist Albert Park said in a series of posts on X.

Moody’s also said the West Asia conflict poses a substantial risk to the global economy, including India, if it causes a prolonged dislocation in energy markets, with the Strait of Hormuz being a critical choke point.