Down To Tipis, RI's Crude Oil Price In November Is Priced At 71.83 US Dollars Per Barrel

JAKARTA - The price of Indonesian crude oil or Indonesian Crude Price (ICP) again decreased in November 2024 to touch the level of 71.83 US dollars per barrel.

This figure shows a decline of US$1.70 compared to the previous month. The decline in world oil prices, which is the main factor behind this decline, also triggers concerns about its potential impact on the national economy.

"The global economic slowdown, particularly in Europe and China, has created a fairly complex domino effect. The decline in world oil demand is one of the impacts. This condition not only has an impact on state revenue, but also has the potential to hinder economic growth and create instability in the global energy market," said Plt. Head of the Communication Bureau, Public Information Service, and Cooperation (KLIK) of the Ministry of Energy and Mineral Resources Chrisnawan Anditya quoted Monday, December 16.

The determination of the ICP in November 2024 of 71.83 per barrel is stated in the Decree of the Minister of Energy and Mineral Resources Number 373.K/MG.03/DJM/2024 concerning the Price of Indonesian Crude Oil in November 2024 dated December 10, 2024.

According to Chrisnawan that the average price of crude oil during November 2024 compared to October 2024, showed a decline. Various factors contributed to a significant drop in crude prices in the international market, including a drop in tensions in the Middle East due to the ceasefire agreement between Israel and the Lebanese Hezbollah group, effective for a 60-day period starting November 26, 2024.

"This development reduces market concerns about potential oil supply disruptions originating from the Middle East region, which is recognized as a leading oil-producing area globally," continued Chrisnawan.

In addition, the world crude oil market is currently faced with high uncertainty. Although OPEC+ oil production has increased, the decline in global demand and the strengthening of the US dollar continue to suppress oil prices.

Data from the publication of OPEC November 2024 show that OPEC+ crude oil production in October reached 40.34 million barrels per day, up 0.21 million barrels per day compared to the previous month. However, the projected growth in global oil demand for 2024 revised down by 107 thousand barrels per day.

" Trump's victory in the US elections reduced demand for crude oil in the international market, as the increase in the value of the US Dollar made all commodities traded in US Dollars more expensive," added Chrisnawan.

For the Asia Pacific region, the decline in crude oil prices, apart from being caused by these factors, was also influenced by a 4.6 percent decrease in oil processing in China, lower than the same period last year due to the closure of a number of refineries and a decrease in operations at independent small refineries.

The full development of the average price of major crude oil in November 2024 compared to October 2024 as follows:

Brent' date fell by 1.19 US dollars per barrel from 75.66 US dollars per Barrel to 74.47 US dollars per barrel.

WTI (Nymex) fell by 2.02 US dollars per barrel from 71.56 US dollars per barrel to 69.54 US dollars per barrel

Brent (ICE) fell by 1.98 US dollars per barrel from 75.38 US dollars per barrel to 73.40 US dollars per barrel.

OPEC basketball fell by $1.45 per barrel from $74.45 per barrel to 73.00 a barrel.

On average, Indonesia's crude oil ICP fell by 1.70 dollars per barrel from 73.53 US dollars per barrel to 71.83 US dollars per barrel.