BRICS has the oil jackpot. Now comes the hard part

BRICS, comprised of Brazil, Russia, India, China, and South Africa, has emerged as an important player in global energy markets. With 11 member countries, they account for a quarter of global nominal GDP and nearly half of the world's population. The group includes significant oil producers like Saudi Arabia, Russia, Iran, and the UAE, as well as major energy consumers such as China and India.

Despite their combined oil power, representing 41% to 47% of global crude oil production, the grouping struggles to create a common energy policy. This is due to the members' differing energy needs and interests. Some, like Russia and Saudi Arabia, depend heavily on oil and gas exports, while others, like China and India, are major energy importers. Additionally, some members are expanding their renewable energy manufacturing capacity, making a unified energy policy challenging.

The group's influence in oil markets may be significant, but its lack of a cohesive energy policy and institutional framework could hinder its ability to serve as a safety net during energy crises or global resource shortages. Furthermore, tensions between members, such as the UAE's suspension of trade and financial transactions with Iran following US and Israeli military strikes, could complicate efforts to draft a joint BRICS statement on the conflict.