World Oil Prices Drop, September ICP Set At 72.54 US Dollars Per Barrel

Photo: Special

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia set the selling price of Indonesian crude oil or Crude Price (ICP) for September 2024 amounting to US$72.54 per barrel, down US$5.96 from the previous month which reached 78.51 per barrel.

This decision is contained in the Decree of the Minister of Energy and Mineral Resources Number 353.K/MG.03/DJM/2024 concerning the Price of Indonesian Crude Oil in September 2024.

This decline was influenced by the decline in global crude oil prices, mainly due to the decline in demand from China.

Head of the Communications, Public Information and Cooperation Service (KLIK) Bureau of the Ministry of Energy and Mineral Resources, Agus Cahyono Adi, explained that the negative sentiment of the market towards the Chinese economy has affected the decline in demand for crude oil.

"China Services Caixin Purchasing Manager Index (PMI) in September 2024 experienced a sharper decline from market estimates to 51.6," Agus said in Jakarta, Friday, October 4.

In addition, oil processing capacity from 35 refineries in China also fell 0.9 percent m-o-m in September 2024, to 80.8 percent of the total capacity of 8.4 million barrels per day.

Agus added that the world's major crude oil average price also decreased compared to August 2024.

Other factors include stable exports and production of Libya's oil following the approval of the appointment of the head of the Libya Central Bank, as well as Iraqi oil exports that hit their highest point in the past eight months.

"Irak exports have reached their highest point over the past 8 months, amid a commitment to comply with the OPEC+ production reduction quota," Agus explained.

The projected growth in global demand for oil for 2024 has also decreased.

OPEC lowered its demand estimate by 80,000 barrels per day (bpd), to 2 million bpd in its September 2024 publication compared to the previous month.

Meanwhile, the International Energy Agency (IEA) reported that the world's oil supply in August 2024 rose 80 thousand bph m-o-m, to 103.5 million bpd.

OPEC also revised its Non-OPEC+ supply estimate to increase by 70 thousand bpd, to 53.07 million bpd for 2024.

In the Asia Pacific region, the decline in oil prices was also influenced by a decline in refinery processing rates in Taiwan, from 760,000 bph (69.7 percent capacity) at the end of August 2024 to 580,000 bph (53.2 percent capacity) at the end of September 2024.

The development of the main crude oil price in September 2024 compared to August 2024 is as follows:

Brent dates fell 6.58 dollars per barrel, from 80.91 US dollars per barrel to 74.33 US dollars per barrel.

WTI (Nymex) is down 6.06 US dollars per barrel, from 75.43 US dollars per barrel to 69.37 US dollars per barrel.

Brent (ICE) is down 6.00 US dollars per barrel, from 78.88 US dollars per barrel to 72.87 US dollars per barrel.

OPEC Basketball is down 4.79 dollars per barrel, from 78.41 dollars per barrel to 73.62 dollars per barrel.

Indonesia's crude oil ICP fell 5.96 dollars per barrel, from 78.51 US dollars per barrel to 72.54 US dollars per barrel.