The Association of Southeast Asian Nations (ASEAN) looks to ratify a petroleum security agreement, Philippine Trade Secretary Cristina Roque said on Thursday as Asian nations are reeling from the shock oil supply crisis amid the Middle East war.
“APSA, or the ASEAN Petroleum Security Agreement, is being pursued to enable coordinated emergency fuel sharing and collective responses to supply disruption,” Roque said during an online briefing, as carried by Reuters.
Southeast Asian economies such as the Philippines, Indonesia, Malaysia, and Vietnam were the first to feel fuel shortages after the blocked Strait of Hormuz cut off most of their regular crude and fuel supply from the Middle East.
The Philippines, which sourced 98% of all its oil from the Middle East before the war, declared a national energy emergency as early as in the middle of March.
Many of the Southeast Asian countries have turned to alternative suppliers, including Russian oil, which is now allowed for unsanctioned sale by the U.S. Treasury until May 16, under a waiver the Trump Administration extended by a month earlier in April.
Amid the fuel crisis and shortages, spiking prices, and accelerating inflation, ASEAN would look to ratify the pact for oil sharing, which is aimed at strengthening energy security and resilience to shocks in the region, the Philippine official said.
The ASEAN bloc will also look to keep open and predictable trade policies and avoid banning exports of essential goods during crises, Roque added.
In a joint statement earlier this week, the Energy Ministers of the ASEAN nations reaffirmed the bloc’s commitment to strengthening regional energy security and resilience through enhanced regional cooperation and coordination.
“We highlighted the importance of supply diversification, including clean and renewable energy transition, broadening sources of crude oil and refined products, strengthening intra-ASEAN energy trade,” the ministers said.
By Tsvetana Paraskova for Oilprice.com
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