JAKARTA - The Ministry of Energy and Mineral Resources set the average price of Indonesian Crude Price (ICP) in October 2024 of 73.53 US dollars per barrel.
This figure is determined through the Decree of the Minister of Energy and Mineral Resources Number 363.K/MG.03/DJM/2024 concerning the Price of Crude Oil in October 2024 dated November 1, 2024.
October ICP saw an increase from the previous month's ICP of US$72.54 per barrel.
"This month's ICP has been set at 73.53 US dollars per barrel, an increase of 0.99 US dollars per barrel from the previous month of 72.54 US dollars per barrel," said Head of the Communications, Public Information Service, and Cooperation (KLIK) Bureau of Energy and Mineral Resources Agus Cahyono Adi quoted Monday, November 11.
Agus explained, this is in line with the rise in major crude prices in the international market which is influenced by the negative sentiment of the world market after indications of Israel's retaliatory attack on Iranian oil facilities, where Iranian leaders are also said to be responding if an attack is carried out.
Agus added that the increase in oil prices also occurred because the United States imposed sanctions on Iran, which has the potential to limit Iran's oil exports to the People's Republic of China (RRT).
Another factor that causes an increase in crude oil prices in October 2024 is the positive market sentiment over the potential demand for RRT oil after the decline in the Central Bank interest rate. Also the increase in the RRT GDP in the third quarter of 2024 to 4.8 percent, which is the first increase in the last nine months.
In addition, related to crude oil supply, according to the publication of OPEC October 2024 (secondary source), production of OPEC+ member countries decreased by 557,000 barrels per day (bpd) compared to last month.
Meanwhile, according to the October 2024 IEA publication, OPEC+ member production has decreased to 0.53 million bpd compared to last month.
Another factor is market positive sentiment at the announcement of the US Department of Energy, which plans to replenish US Strategic Petroleum Reserve (SPR) for the distribution from April to May 2025 to 3 million barrels.
"Meanwhile, for the Asia Pacific region, the increase in crude oil prices, apart from being caused by these factors above, is also influenced by Crude throughput Taiwan which has increased by 50,000 bpd or reached 630,000 bpd of the total capacity of 1.09 million bpd at the end of October 2024 compared to the end of September 2024," concluded Agus.
SEE ALSO:
The full development of the average price of major crude oil in October 2024 compared to September 2024, as follows:
- Dated Brent rose by 1.33 US dollars per barrel from 74.33 US dollars per barrel to 75.66 US dollars per barrel.
- WTI (Nymex) increased by 2.19 US dollars per barrel from 69.37 US dollars per barrel to 71.56 US dollars per barrel
- Brent (ICE) increased by 2.51 US dollars per barrel from 72.87 US dollars per barrel to 75.38 US dollars per barrel
- OPEC Basketball increased by 1.00 US dollars per barrel from 73.59 US dollars per barrel to 74.59 US dollars per barrel
- The average ICP of Indonesian crude oil rose by 0.99 US dollars per barrel from USD 72.54 per barrel to USD 73.53 per barrel.
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