Soaring, Indonesian Crude Oil Prices July 2024 Set At 82 US Dollars Per Barrel

Crude Oil (Photo: Unsplash)

JAKARTA - The average price of Indonesian Crude Price (ICP) in July 2024 increased by USD 2.68 per barrel to USD 82 per barrel.

For information, in the previous month, the ICP was set at 79.31 US dollars per barrel.

The determination of the ICP was carried out by the Minister of Energy and Mineral Resources (ESDM) through the Decree of the Minister of Energy and Mineral Resources Number 333.K/MG.03/DJM/2024 concerning the Price of Crude Oil in July 2024 dated August 1, 2024.

"The ICP in July 2024, in accordance with what has been determined by the Minister of Energy and Mineral Resources is USD82 per barrel, an increase from the ICP in June of USD79.31 per barrel," said Head of the Communications, Public Information Service, and Cooperation (KLIK) Bureau of Energy and Mineral Resources Agus Cahyono Adi quoted Tuesday, August 6.

Agus said the increase in the July 2024 ICP was accompanied by an increase in the price of major crude oil in the international market, which was caused by continued tensions in the Middle East, such as attacks in the continuing Red Sea, including ships carrying Russian oil at 570 bbls.

"In addition, OPEC revised an increase in global economic growth in 2024 in the publication of MOMR in July 2024 compared to last month's publication of 0.1 percent to 2.9 percent. This is also in line with the revision of rising economic growth in the European and Russian regions by 0.2 percent to 0.7 percent and 3.1 percent, respectively," he added.

Agus said another factor that caused an increase in the price of oil in the July 2024 outlook was the first decline in US inflation in the last 3 years in June 2024 by 0.1 percent mom to 3 percent.

"This increases the potential for lowering US interest rates," he added.

The condition of US inflation is exacerbated by forest fires in Alberta which trigger fears of disruption to oil supply with a potential of up to 500 thousand bpd. Oil producers have evacuated workers from oil production areas.

In addition to the world's oil supply, the International Energy Agency (IEA) estimates that OPEC+ production in 2024 will decline by 740,000 bpd compared to last year.

Another factor is that the Central Bank of China (PBOC) lowers the Reverse Repo 7 Hari interest rate and prime loans to 10 basis points, showing a stimulus for economic growth," said Agus.

For the Asia Pacific region, the increase in crude oil prices, apart from being caused by these factors above, was also influenced by an increase in the run rate of up to 62.2 percent in July 2024 at 25 Chinese independent refineries in Shandong with a total capacity of 2.1 million bpd, an increase of 3 percent compared to last month.

In addition, there was an increase in the South Korean Refinery run rate at the end of July 2024 to 84.9 percent or 2.6 million bpd compared to the month before which it was only 82.4 percent or 2.5 million bpd.

The full development of the average price of major crude oil in July 2024 compared to June 2024 has increased to the following:

- Dated Brent rose by 2.70 US dollars per barrel from 82.61 US dollars per barrel to 85.31 US dollars per barrel.

- WTI (Nymex) increased by 1.78 US dollars per barrel from 78.70 US dollars per barrel to 80.48 US dollars per barrel.

- Brent (ICE) rose by USD 0.88 per barrel from USD 83.00 per barrel to USD 83.88 per barrel.

- OPEC basketball rose by $1.55 per barrel from $83.05 per barrel to $84.60 per barrel.

- On average, Indonesia's crude oil ICP increased by USD 2.69 per barrel from USD 79.31 per barrel to USD 82.00 per barrel.