Minister Of Energy And Mineral Resources Kerek ICP August So 82.59 US Dollars Per Barrel

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif raised the average price of Indonesia Crude Price (ICP) in August 2023 to 82.59 US dollars per barrel.

This figure has increased by 7.53 US dollars per barrel when compared to the July ICP at 75.06 US dollars per barrel.

"The determination of the ICP in August 2023 amounting to 82.59 US dollars per barrel is stated in the Decree of the Minister of Energy and Mineral Resources Number 324.K/MG.03/DJM/2023 concerning the Price of Indonesian Crude Oil in August 2023 dated September 1, 2023," said the Head of the Communications Bureau, Public Information Services, and Cooperation of the Ministry of Energy and Mineral Resources Agung Pribadi to reporters, Tuesday, September 12.

Based on the analysis of the Indonesian Crude Oil Price Team, continued Agung, the increase in the ICP was influenced by several factors in the global crude supply, namely the voluntary cut in oil production by Saudi Arabia by 1 million barrels per day will continue until September 2023.

Then Russia's commitment to the OPEC+ supply cuts policy is 500 thousand barrels per day from March to the end of 2023 as well as Russia's plan to reduce crude exports to 300 thousand barrels per day by September 2023.

And finally the use of active rig oil in the US shows a downward trend since November 2022, and on August 25 it hit its lowest level since March 2022, namely 512 oil rigs.

"In addition, the major increase in crude oil prices was also due to increased geopolitical tensions between Russia and Ukraine, as well as the impact of Hurricane Idalia off the coast of the Gulf of Mexico and Florida in late August 2023, which caused market concerns over disruptions to crude oil production and distribution from the Gulf of Mexico", Agung explained.

In the EIA weekly report, he said, United States crude and gasoline stockpiles experienced a decline in the form of a decline in US crude stockpiles in August 2023 to 421.7 million barrels which is the lowest level since December 2022, and in the form of a decline in US gasoline stocks in August 2023 to 217.4 million barrels or 1.7 million barrels lower than the same period the previous month.

"Then there was an increase in crude oil prices for the Asia Pacific region, apart from being caused by these factors, it was also influenced by market reactions against Saudi Aramco's plan to increase the selling price of oil for the Asian region starting September 2023," Agung explained.