Geopolitical Tensions In The Middle East Raise ICP Prices To 80.09 US Dollars Per Barrel

Illustration (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif set the average price of Indonesia Crude Price (ICP) or Indonesian crude oil in February 2024 to increase to 80.09 dollars SA per barrel.

The price of this ICP increased by 2.97 US dollars per barrel from the average price of the ICP in January which amounted to 77.12 US dollars per barrel.

"The determination of the ICP in February 2024 is contained in the Decree of the Minister (Kepmen) of Energy and Mineral Resources Number 193.K/MG.03/DJM//2024 concerning the Price of Indonesian Crude Oil in February 2024 which was signed as of March 1, 2024," said the Head of the Communications, Public Information Services, and Cooperation of the Ministry of Energy and Mineral Resources, Agus Cahyono Adi in Jakarta, Wednesday, March 6.

Based on the analysis of the Indonesian Crude Oil Price Team, Agus explained, it was due to market concerns over crude oil supply disruptions due to increasing geopolitical tensions in the Middle East region.

"In addition, another factor in increasing oil prices is due to the possibility of OPEC continuing oil production cuts until March 2024. This is in accordance with the OPEC state agreement in November 2023 to cut production by 2.2 million barrels per day (bpd) until the first quarter of 2024," he added.

Meanwhile, in an International Energy Agency (IEA) report, it was stated that world oil supply in January 2024 decreased sharply by 1.4 million bp after explosions in the Arctic halted production in North America and production tightening from OPEC countries.

For the Asia Pacific region, Agus continued, there was an increase in crude oil prices apart from being caused by the above factors, it was also influenced by an increase in the Throughput of oil refineries in China, India, and Singapore to an average of 91.72 percent in January, 0.1 p.p higher than the previous month. Then there was also an increase in demand for oil in China by 1.3 million bph year on year (yoy) and India by 133,000 bp yoy for December 2023.

In full, the development of the average price of major crude oil in February 2024 compared to January 2024 has increased to the following:

- Dated Brent rose by 3.61 US dollars per barrel from USD 80.32 per barrel to USD 83.93 per barrel-WTI (Nymex) up by USD 2.75 per barrel from USD 73.86 per barrel to USD 76.61 per barrel- Brent (ICE) up USD 2.57 per barrel from USD 79.15 per barrel to USD 81.72 per barrel.- Basketball OPEC rose by USD 1.15 per barrel from USD 80.04 per barrel to USD 81.19 per barrel.- The average ICP of Indonesian crude oil rose by USD 2.97 per barrel from USD 77.12 per barrel to USD 80.09 per barrel.