ASEAN should establish strategic oil reserves, says bloc chief

The Association of Southeast Asian Nations should create a collective strategic oil reserve to strengthen regional energy independence, according to the bloc's top official. The initiative would help insulate ASEAN member states from external price shocks and supply disruptions that could destabilize their economies.

Energy security has emerged as a critical concern for Southeast Asian nations as they navigate geopolitical tensions and unpredictable international oil markets. Many ASEAN countries rely heavily on energy imports to fuel their growing economies, making them vulnerable to supply constraints and price fluctuations beyond their control.

A regional reserve would serve as a buffer mechanism, allowing member states to draw on stored petroleum during emergencies or periods of market instability. Such an arrangement could also strengthen ASEAN's collective bargaining position in global energy negotiations and reduce dependence on individual bilateral relationships for fuel supplies.

The proposal aligns with broader efforts by ASEAN to enhance regional resilience and cooperation across critical infrastructure sectors. Several major economies outside the bloc, including Japan and South Korea, maintain significant strategic petroleum reserves as a cornerstone of their energy policies.