JAKARTA - The average price of Indonesian crude oil or Indonesian Crude Price (ICP) in May was 106.56 US dollars per barrel, lower than the ICP in April which was at the level of 117.31 US dollars per barrel.
"The average ICP for May 2026 was set at 106.56 US dollars per barrel, in line with the decline in the world's main crude oil prices," said Director General of Oil and Gas (Migas) Laode Sulaeman, quoted by ANTARA, Saturday, June 6.
This month's ICP decline is in line with the weakening of the world's main crude oil prices, especially Dated Brent, which is influenced by easing geopolitical tensions between the United States, Israel, and Iran.
"This positive development is generally influenced by improvements in global supply as global geopolitical conflicts subside," said Laode.
Laode explained that throughout May 2026 the global oil market responded to a number of developments indicating an escalation of the conflict in the Middle East.
US President Donald Trump has repeatedly delivered positive signals regarding the possibility of ending the conflict, as well as progress in negotiations with Iran.
In addition, the United States also canceled plans for further attacks on Iran and again granted a temporary exemption from sanctions on Russian oil that had been at sea.
"This development has reduced market concerns about the potential disruption of world oil supplies and pressured crude oil prices in the international market," said Laode.
In addition to geopolitical factors, the decline in oil prices is also influenced by the weakening global demand outlook.
The International Energy Agency (IEA) estimates that world oil demand has fallen by 420 thousand barrels per day to around 104 million barrels per day. The largest decline in demand occurred in the second quarter of 2026, reaching 2.45 million barrels per day.
In the Asian region, oil imports also experienced a significant decline throughout February to April 2026. The decline in imports was recorded in China, Japan, South Korea, and India. Meanwhile, China's crude oil processing activity (crude throughput) fell 5.8 percent year-on-year to 13.35 million barrels per day, the lowest level in the last 44 months.
In response to the dynamics that have occurred, the Government continues to monitor the development of the global energy market and various factors that have the potential to affect the stability of supply, as well as national energy prices.
"Through continuous monitoring and the necessary proactive steps, the government is committed to maintaining national energy resilience and ensuring the availability of energy supply for the community," said Laode.
In detail, the development of the average price of major crude oil in May 2026 compared to April 2026 is as follows:
The average ICP for Indonesian crude oil decreased by 10.75 US dollars per barrel from 117.31 US dollars per barrel to 106.56 US dollars per barrel; Brent (ICE) prices rose by 1.25 US dollars per barrel from 102.46 US dollars per barrel to 103.71 US dollars per barrel; WTI (Nymex) rose by 0.45 US dollars per barrel from 98.06 US dollars per barrel to 98.51 US dollars per barrel; Dated Brent fell by 12.99 US dollars per barrel from 120.55 US dollars per barrel to 107.55 US dollars per barrel; OPEC basket rose by 3.45 US dollars per barrel from 108.79 US dollars per barrel to 112.24 US dollars per barrel (as of May 29, 2026).
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