Indonesia's Crude Oil Price Drops Slightly To 79.31 US Dollars Per Barrel

Crude Oil (Photo: Unsplash)

JAKARTA - The average price of Indonesian crude oil in June 2024 decreased compared to the average price of crude oil in May 2024 of 0.47 US dollars per barrel, from 79.78 dollars per barrel to 79.31 dollars per barrel.

The decline in major international crude prices was influenced, among other things, by market doubts on the demand for world crude oil, which is indicated by an increase in US oil stocks.

The determination of the ICP in June 2024 amounting to 79.31 US dollars per barrel, is stated in the Decree of the Minister of Energy and Mineral Resources Number 327.K/MG.03/DJM/2024 concerning the Price of Crude Oil in June 2024 dated July 1, 2024.

The Indonesian Crude Oil Price Team in the Executive Summary said that the average price of major crude oil in June 2024 compared to May 2024 has decreased. Some of the factors that influence the international market include profit-taking when crude oil prices are experiencing a strengthening triggered by concerns over disruptions to oil supply due to geopolitical upheaval in Russia and the Middle East.

Furthermore, another concern is the US economic condition when the US Central Bank delayed its interest rate reduction, thereby amplifying the US Dollar exchange rate and leading investors to shift investments from the commodity market to the US Dollar. As well as market concerns about increasing crude oil supply, due to the results of the OPEC+ meeting in early June 2024, among others, agreeing to start reducing production cuts in early Q4 2024.

Regarding world oil supply in June 2024, the IEA reported an increase in world oil supply of 520,000 barrels per day to 102.5 million barrels per day compared to the previous month's report. On the other hand, in its report, the IEA lowered its projected world crude oil growth projected the growth in world crude demand for oil in 2024 by 100,000 bpd to 960,000 bpd, "said the Price Team quoted Monday, July 8.

Another factor that caused the decline in crude oil prices in June 2024 was that the United States crude stock increased by 4.8 million per barrel to 460.7 million per barrel compared to the previous month's stock, making the market worried about oil demand in the summer.

The United States' gasoline stock has increased by 3.0 million barrels to 233.9 million barrels compared to the previous month's stock.

The full development of the main crude oil price in June 2024 compared to May 2024 is relatively stable with the following details:

Brent' dated rose by USD 0.56 per barrel from USD 82.05 per barrel to USD 82.61 per barrel.

WTI (Nymex) increased by 0.08 US dollars per barrel from 78.62 dollars per barrel bbl to 78.70 dollars per barrel

Brent (ICE) is stable from 83.00 dollars per barrel to 83.00 dollars per barrel.

OPEC basketball fell by 0.54 dollars per barrel from $83.59 per barrel to $83.05 per barrel.