Pakistan is making progress toward strengthening its oil reserves despite the ongoing global energy crisis triggered by the Middle East conflict. Three crude oil ships carrying over 1.25 million barrels of oil are scheduled to arrive in the country this week.
Officials say the shipments are part of efforts to stabilize fuel supplies as international oil markets remain volatile.
According to officials from the Pakistan National Shipping Corporation (PNSC), two crude oil tankers from Fujairah are arriving in Pakistan on March 12 and March 13. The vessels, named Karachi and Shalimar, are carrying 1.25 million barrels of crude oil.
A third tanker named Lahore is also expected to reach Pakistan by March 16, further adding to the country’s strategic oil reserves.
Ships to anchor at Karachi Port, Port Qasim
PNSC officials said the crude oil ships will dock at Karachi Port and Port Qasim upon arrival. The shipments have been ordered by Pak-Arab Refinery Company (PARCO) and National Refinery Limited, which will process the crude oil to support domestic fuel demand.
Authorities say the incoming shipments reflect positive progress in increasing Pakistan’s oil reserves despite the difficult global situation.
G7 agrees to release strategic oil reserves
Meanwhile, global efforts are underway to stabilize energy markets. The Group of Seven (G7) nations have agreed to release oil from their strategic reserves, aligning with proposals from the International Energy Agency (IEA).
Also Read: US-Iran tensions escalate as strikes exchange deepens Middle East crisis
In a joint statement, the countries said they would take steps to maintain global oil supply amid rising geopolitical tensions.
Japan has also announced it will begin releasing oil from its reserves starting March 16, according to the Japanese prime minister.
Oil prices rebound
Oil prices rebounded on Wednesday as traders questioned whether the planned release of reserves could offset supply shocks caused by the US-Israeli conflict with Iran.
Brent crude futures rose $3.31, or 3.8%, to $91.11 per barrel, while US West Texas Intermediate (WTI) climbed $3.13, or 3.8%, to $86.58 per barrel.
Both benchmarks had plunged more than 11% on Tuesday, despite a 5% surge in US crude prices at the start of trading.
Record strategic oil release planned
The International Energy Agency is expected to recommend releasing 400 million barrels of oil, the largest such move in the agency’s history. This would be more than double the 182 million barrels released in 2022 following Russia’s invasion of Ukraine.
Sources say the release would be spread over at least two months, while Spain’s energy minister indicated countries could have up to 90 days to release the agreed volume.
However, analysts say the move may have limited impact.
Also Read: Oil prices plunge, surge amid conflicting Iran war reports
Goldman Sachs analysts noted that even a release of 182 million barrels would offset only 12 days of the estimated 15.4 million barrels per day disruption in Gulf exports.
SEB analyst Bjarne Schieldrop said the market does not appear convinced that the largest-ever release of reserves will sufficiently ease the crisis.
Conflict intensifies in Middle East
Energy markets remain under pressure as the United States and Israel carried out intense airstrikes on Iran on Tuesday. The Pentagon and Iranian sources described the attacks as the most intense airstrikes of the war so far.
The US military also eliminated 16 Iranian mine-laying vessels near the Strait of Hormuz, according to US Central Command.
US President Donald Trump warned that any mines placed in the strategic waterway must be removed immediately.
Although Trump has said the US could escort tankers through the Strait of Hormuz, sources told Reuters that the US Navy has declined shipping industry requests for escorts due to high security risks.
G7 leaders discuss energy crisis
World leaders are also coordinating responses to the energy crisis.
French President Emmanuel Macron hosted a video call with other G7 leaders to discuss the impact of the Middle East conflict on global energy markets and possible measures to stabilize supply.
Further disruptions have emerged in the Gulf energy infrastructure. Abu Dhabi’s state oil giant ADNOC shut down its Ruwais refinery after a fire broke out following a drone strike at the facility.
Meanwhile, Saudi Arabia, the world’s largest oil exporter, is attempting to increase exports through the Red Sea port of Yanbu.
However, shipping data indicates these supplies remain far below the level needed to replace lost oil flows from the Strait of Hormuz.
Also Read: Iran’s national security adviser Ali Larijani responds to Trump’s warning
Neighbouring producers Iraq, Kuwait, and the United Arab Emirates have already reduced output.
Energy consultancy Wood Mackenzie estimates that the conflict is currently cutting Gulf oil and petroleum product supplies by around 15 million barrels per day. Such disruptions could push crude oil prices to $150 per barrel, the consultancy warned.
Morgan Stanley analysts also noted that even if the conflict ends quickly, energy markets could face weeks of disruption.
US oil inventories decline
Reflecting stronger demand, US crude, gasoline, and distillate inventories declined last week, according to market sources citing data from the American Petroleum Institute.
The drop in stockpiles adds further pressure to already volatile global energy markets.
