ASEAN Agrees to Create Shared Emergency Oil Stocks
The planned reserve would store crude in Indonesia and Thailand, with the Philippines seeking access to gasoline and diesel supplies.
Key takeaways
- ASEAN agreed to establish a joint crude oil stockpiling scheme.
- The Philippines has asked to buy gasoline and diesel from storage sites in Indonesia and Thailand during a supply emergency.
ASEAN has agreed to establish a joint crude oil stockpiling scheme as the region faces supply disruption linked to the war in Iran. Storage sites are planned for Indonesia and Thailand, Reuters reported.
Under the proposed ticket system, a member country would pay an advance fee to reserve the right to buy a set volume of oil or fuel from another member’s storage site, Reuters reported. The Philippines has asked to buy gasoline and diesel from the sites if a supply emergency occurs.
The initiative came from Indonesia and has strong support from Japan, according to OilPrice.com. The outlet reported that the supply crunch has pushed Asian countries to seek alternatives at higher prices.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
