ICP March 2024 Rises To 83.78 US Dollars Per Barrel

JAKARTA - Minister of Energy and Mineral Resources Arifin Tasrif set the average price of Indonesian crude oil in March 2024 to increase by 3.69 US dollars per barrel from 80.09 per barrel to 83.78 per barrel.

The Indonesian Crude Oil Price Team in the Executive Summary stated that factors affecting the increase in crude prices in the international market include Ukraine's attacks on Russian oil refineries, potentially disrupting fuel supplies in Asia and Europe and generating potential supply tightening in the oil market.

The determination of the ICP in March 2024 through the Decree of the Minister of Energy and Mineral Resources Number 213.K/MG.03/DJM/2024.

Another major factor that led to an increase in crude oil prices in March 2024, due to a decline in US crude stockpiles in mid-March 2024 and a decline in US gasoline stocks that exceeded market forecasts, was seen by the market as an indicator of an increase in demand for oil.

On the other hand, based on monthly reports, OPEC and IEA are expected to demand strong oil for 2024 and 2025.

Factors that also affect the increase in the price of major crude oil in the International Market, among others, related to the world's oil supply

The IEA reported that the world's oil supply in the first quarter of 2024 fell by 870 thousand bpd compared to the previous quarter due to the closure of oil wells due to bad weather and the agreement to reduce oil production by OPEC+ and disruption of Houthi attacks on the Red Sea cruise route, the Price Team wrote.

For the Asia Pacific region, the increase in crude oil prices in addition to being caused by these factors above is also influenced by an increase in industrial sector production and profit on the RRT in January and February 2024, where industrial sector profits increased 10.2 percent from the previous year, higher than market projections.

"This indicates the economic recovery of the RRT as one of the largest energy consumers," said the Price Team.

Another indication is that the increase in imports of crude oil on the RRT during the January February 2024 period was 10.74 million, 5.1 percent higher than imports of crude oil in the same period in 2023.

The development of the average price of major crude oil in March compared to February 2024 has increased to the following:

Brent' dated rose USD 1.56 per barrel from USD 3.93 per barrel to USD 85.48 per barrel.

WTI (Nymex) increased by 3.80 US dollars per barrel from 76.61 US dollars per barrel to 80.41 US dollars per barrel.

Brent (ICE) increased by USD 2.95 per barrel from USD 81.7 per barrel to USD 84.67 per barrel.

OPEC basketball rose by 2.90 US dollars per barrel from $81.23 per barrel to 84.13 dollars per barrel.

On average, Indonesia's crude oil ICP increased by USD 3.69 per barrel from USD 80.09 per barrel to USD 83.78 per barrel.