World Oil Demand Raises ICP Prices In January To 77.12 US Dollars Per Barrel

Crude oil illustration (photo: unsplash)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif set Indonesia Crude Price (ICP) in January 2024 amounting to 77.12 US dollars per Barrel.

The determination of the ICP is contained in the Decree of the Minister of Energy and Mineral Resources Number 139.K/MG.03/DJM/2024 concerning the Price of Crude Oil in January 2024 dated February 1, 2024.

"The government through the Ministry of Energy and Mineral Resources has set the ICP for January 2024 at 77.12 US dollars per Barrel. The average price of Indonesian crude oil in January 2024 increased compared to the previous month in December 2023 of 1.61 per barrel of 75.51 US dollars," said Head of the Communications Bureau of Public Information Services and Cooperation Agus Cahyana Adi, Friday, February 2.

Aca estimates that the increase in world oil prices which correlate with the price of the ICP is not only due to increased demand but also concerns about supply disruption amid continued geopolitical risks in the Red Sea, at the end of January 2024 which was marked by an attack on an oil ship carrying naphta.

The demand for world oil in the first quarter of 2024 is expected to increase by 1.7 million barrels per day (bpd), which is influenced by the provision of Chinese refinery quotas, however, on the global oil supply, there is a decrease in oil supply.

OPEC indicated a decline in world supply in December 2023 by 400 thousand bpd to 100.9 million bpd. Non-OPEC state production is expected to fall by 0.5 million bpd in December 2023," added Aca.

Aca said the world's demand for oil was also due to ongoing tensions between Russia and Ukraine. As well as the EIA weekly report, US crude stockpiles decreased by the end of January 2024 by 10.4 million barrels to 420.7 million barrels. In addition, it was also reported that the decline in US oil production at the end of January 2024 was 900 thousand bpd to 12.3 million bpd.

For the Asia Pacific region, the increase in crude oil prices is also influenced by China's economic stimulus through a decrease in the reservoir ratio which is expected to increase China's economic growth.

In full, the development of the average price of major crude oil in January 2024 compared to December 2023 increased to the following:- Dated Brent rose by USD 2.41 per barrel from USD 77.91 per barrel to USD 80.32 per barrel.- WTI (Nymex) increased by USD 1.74 per barrel from USD 72.12 per barrel to USD 73.86 per barrel.- Brent (ICE) increased by USD 1.83 per barrel from USD 77.32 per barrel to USD 79.1 doaller per barrel.- OPEC Basketball rose by USD 0.90 per barrel from USD 79.00 per barrel of USD 79.90 per barrel.- The average Indonesian crude oil ICP rose by USD 1.61 per barrel from USD 75.51 per barrel to USD 77.12 per barrel. per barrel. per barrel.