Iran-Israel Conflict Heats Up, World Crude Oil Prices Expected To Reach 100 US Dollars Per Barrel J

Tutuka Ariadji dalam Zoom dalam agenda Ngobrol Seru Dampak Konfeksi Iran-Israel ke Ekonomi RI. (foto: aris/voi.id)

JAKARTA - Director General of Oil and Gas (Migas) of the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji estimates that in the short term the conflict between Iran and Israel will make the price of Indonesian crude oil or the Indonesia Crude Price (ICP) also increase.

Tutuka said that in the short term following Iran's attack on Israel, the world crude price is estimated to have jumped to 100 US dollars per barrel. Meanwhile, in the assumption of the macro-economics of the 2024 State Budget, the government has set an ICP of 82 US dollars per barrel.

"(The impact of Iran's attack on Israel) is likely to increase global oil prices to 100 US dollars per barrel," said Tutuka on the agenda of Discussing the Seru Impact of the Iran-Israeli Conflict on the Republic of Indonesia's Economy, Monday, April 15.

On the other hand, Tutuka said that from February to April, ICP tends to increase by around 5 US dollars per month. According to him, the increase in ICP will have an impact on soaring energy subsidies. Even so, Tutuka said that his party was still reviewing whether the conflict would continue or not.

"Of course, this is a short-term impact, we need caution because longer predictions will be less accurate. We'll see the current response, we'll wait and see in the future," he said.

Tutuka said that at least in the short term there are several things that the government will pay attention to, namely the first comes from the reactions of producer and consumer investors in conducting assessments of future risks. For example, like the potential for an Israeli response that will affect the perception of the possibility of market escalation.

According to him, the second factor is that it comes from oil prices in the future which will contain geopolitical. And the third sentiment, it is estimated that members of the Organization of the Petroleum Exporting Countries (OPEC) or Organizations of Oil Exporting Countries in the world, will reduce the increase in oil prices in the future to be more balanced.