The lifting of COVID-19 restrictions in China is set to boost global oil demand this year to a new record high, the International Energy Agency (IEA) said recently, while price cap sanctions on Russia could dent supply.

 

About the International Energy Agency

  • It is an international intergovernmental organisation based in Paris that was established in 1974.
  • Mandate — To maintain the stability of the international oil supply.
  • It was founded in response to the 1973 oil crisis, in which the supply chain for oil temporarily broke down.
  • IEA operates within the broader framework of the Organization for Economic Co-Operation and Development (OECD).
  • As of 2022, the IEA has 31 member nations.
  • India became an associate member of IEA in 2017.
  • According to the IEA, a member country must maintain “crude oil and/or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply“.