Brics meets as oil crosses $100: Can the bloc build a new energy security network?

Brics leaders will meet in New Delhi on September 12-13 as Brent crude trades above $100 a barrel, putting energy security back at the centre of the global economy.

Brent futures touched $102.07 a barrel on Thursday as the Iran conflict and attacks on maritime shipping raised fresh concerns over supplies through the Strait of Hormuz. The waterway previously carried about one-fifth of global oil and gas supplies, making any prolonged disruption a major risk for energy-importing economies in Asia.

For India, the question is particularly important. It is one of the world’s largest oil importers, leaving its economy exposed to higher crude prices, freight costs and disruptions along key shipping routes. The latest shock has therefore arrived at a time when New Delhi is already trying to build greater resilience into its energy system.

That gives the Brics grouping an important energy dimension.

The 11-member bloc brings together some of the world’s major energy producers, including Russia, Iran, Saudi Arabia and the UAE, alongside large consumers such as India and China. Brazil is also a significant oil producer. Together, Brics members account for about 49.5 per cent of the global population, 40 per cent of global GDP and 26 per cent of global trade, according to the Indian government.

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The potential is clear. Brics has producers, consumers, ports, refineries, financial institutions, energy companies and growing technological capabilities. The question is whether these assets can be connected into something more useful during a supply shock.

The bigger opportunity may be outside a common oil policy

Oil rises above $100 as West Asia war escalates, raising supply fears. Representational image/Reuters

The current oil shock has exposed a basic weakness in the idea that having major producers inside Brics automatically creates energy security.

Energy trade will continue to be shaped by commercial interests, existing contracts, geopolitical considerations and the infrastructure available to move supplies. A Brics label by itself cannot determine where oil and gas will flow.

Gauri Jauhar, Executive Director, Strategic Climate & Clean Energy Initiatives and CERAWeek at S&P Global Energy, told Firstpost that the more significant opportunity could lie in cooperation among companies across the bloc rather than in trying to coordinate energy trade as a group.

“Trade in energy will proceed with countries inside and outside the Brics framework, based on commercial and geopolitical rationale,” Jauhar said.

She said Brics companies could instead share best practices across the energy value chain in ways that encourage new supplies while maintaining safety and reliability.

“The real opportunity here is for co-operation among companies of the Brics nations to share best practices across the energy value chain, that incentivize new energy supplies with safety and reliability considerations,” she said.

That cooperation, Jauhar added, could extend to technology and artificial intelligence, as well as commercial structures that improve the economics of energy supply and the efficiency of demand.

“These could extend to technology and AI use cases and commercial frameworks that address the economics of supply and the efficiency of demand across the energy value chain,” she said.

Jauhar also pointed to an example from India’s energy sector, where the codification of international best practices has helped stakeholders develop a clearer understanding of industry standards and can support dispute resolution in contracts.

The distinction is important. Rather than attempting to create a collective Brics energy market, members could use the grouping to make their existing energy markets more efficient, interoperable and resilient.

From oil supply to energy infrastructure

Subba Rao Pavuluri, president of the Satellite Industry Association-India, said Brics could deepen cooperation not only through energy trade but also through technology, investment and easier financial transfers between member countries.

“There is a trade and investment part, energy security, and digital technologies,” Pavuluri said in an interview with TV Brics. He argued that Brics countries have expertise across sectors that can be shared more systematically within the grouping.

His broader point is important for the energy debate.

Energy security is no longer only about finding another barrel of crude. It also depends on grids, storage, transport infrastructure, digital systems and the ability to move money and technology across borders.

India has already sought to push Brics cooperation in precisely these areas during its 2026 chairship.

At the Brics Energy Ministers’ Meeting in Gurugram in June, ministers identified energy security and sustainability, energy access and equity, and technology and innovation as three priority areas. The agenda included diversified energy sources, critical minerals, supply-chain resilience, grid modernisation, energy storage, hydrogen, digitalisation and artificial intelligence.

One concrete outcome was the launch of the Brics Digital Centre of Excellence for Smart Grids and Energy Storage under the Brics Energy Research Cooperation Platform. The centre is intended to support knowledge sharing, capacity building, exchange of regulatory practices and pilot projects among member countries.

Pavuluri pointed to the same area, arguing that cooperation in digital technologies could support energy infrastructure and storage across Brics countries. He specifically highlighted the importance of a Brics digital centre focused on smart grids and energy storage.

Why Hormuz changes the calculation

Vessels near the Strait of Hormuz, as seen from Musandam, Oman. File/Reuters

The current crisis has also shown why energy security cannot stop at production.

The Strait of Hormuz remains one of the world’s most important energy chokepoints. The disruption to shipping has sharply reduced flows through the waterway, even as some Gulf producers have redirected exports through alternative routes.

That means a serious Brics energy-security framework would have to look beyond crude production.

It could involve cooperation on ports, pipelines, shipping routes, storage facilities and emergency logistics. Greater coordination on refining capacity and long-term energy investments could also help reduce vulnerabilities created by dependence on individual suppliers or transport corridors.

The bloc already has a policy framework pointing in that direction.

The Brics Energy Cooperation Roadmap 2025-2030, adopted during Brazil’s 2025 presidency, seeks deeper cooperation on energy security, investment, energy trade, infrastructure and technology, while also addressing the transition towards lower-carbon energy systems.

India’s 2026 energy track has built on that framework, with the stated objective of pursuing “Energy for All” while balancing security, affordability, sustainability and innovation.

Storage could be the missing layer

Storage tanks of an oil refinery of Essar Oil, which runs India’s second biggest private sector refinery, are pictured in Vadinar in the western state of Gujarat, India. File/Reuters

For India, strategic storage is another important part of the equation.

The country has 5.33 million tonnes of strategic crude storage at Visakhapatnam, Mangaluru and Padur under Phase I. The government has given in-principle approval for another 6.5 million tonnes of underground storage capacity at Chandikhol in Odisha and Padur in Karnataka under Phase II.

A coordinated Brics approach to emergency stocks could, in theory, strengthen resilience. But that would be considerably harder than sharing technology.

Each member has different import needs, production levels, reserve policies and strategic priorities. There is also no Brics equivalent of a common emergency oil stockpile that can automatically release supplies during a disruption.

The grouping is not OPEC either. It does not collectively determine production targets or allocate crude supplies among members.

Brics works largely through consensus and voluntary cooperation, so the most realistic near-term outcome is likely to be stronger coordination rather than a formal energy alliance.