ASIATODAY.ID, JAKARTA – Crude oil prices in the Asia Pacific region have decreased, including in Indonesia.
The price of Indonesia Crude Price (ICP) for September 2024 is US$72.54 per barrel, down US$5.96 from the previous month which reached US$78.51 per barrel.
The new ICP price has been determined through the Decree of the Minister of Energy and Mineral Resources Number 353.K/MG.03/DJM/2024 concerning Indonesian Crude Oil Prices for September 2024.
This decline was influenced by the decline in global crude oil prices, especially due to decreased demand from China.
Head of the Communications, Public Information Services and Cooperation Bureau of the Indonesian Ministry of Energy and Mineral Resources, Agus Cahyono Adi, explained that negative market sentiment towards the Chinese economy had influenced the decline in demand for crude oil.
“China’s Caixin Purchasing Manager Index (PMI) for Services in September 2024 experienced a sharper decline than market estimates, to 51.6,” said Agus in Jakarta, quoted Friday, October 4 2024.
In addition, the oil processing capacity of 35 refineries in China also fell 0.9% m-o-m in September 2024, to 80.8% of the total capacity of 8.4 million barrels per day.
Agus added that the average price of the world’s main crude oil has also decreased compared to August 2024. Other factors include the stability of Libya’s oil exports and production after the approval of the appointment of the head of the Libyan Central Bank, as well as Iraq’s oil exports which reached their highest point in the last eight months.
“Iraq’s exports reached their highest point in the last 8 months, amidst a commitment to comply with OPEC+ production reduction quotas,” explained Agus.
Global oil demand growth projections for 2024 have also decreased. OPEC lowered its demand estimate by 80 thousand barrels per day (bpd), to 2 million bpd in its September 2024 publication, compared with the previous month.
Meanwhile, the International Energy Agency (IEA) reported that world oil supplies in August 2024 rose by 80 thousand bpd m-o-m, to 103.5 million bpd. OPEC also revised its Non-OPEC+ supply estimate up 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 the decline in refinery processing levels in Taiwan, from 760 thousand bpd (69.7% of capacity) at the end of August 2024 to 580 thousand bpd (53.2% of capacity) at the end of September 2024.
The main crude oil price developments in September 2024 compared to August 2024 are as follows:
– Dated Brent fell US$6.58/bbl, from US$80.91/bbl to US$74.33/bbl.
– WTI (Nymex) fell US$6.06/bbl, from US$75.43/bbl to US$69.37/bbl.
– Brent (ICE) fell US$6.00/bbl, from US$78.88/bbl to US$72.87/bbl.
– The OPEC basket fell US$4.79/bbl, from US$78.41/bbl to US$73.62/bbl.
– Indonesian crude oil ICP fell by US$5.96/bbl, from US$78.51/bbl to US$72.54/bbl. (AT Network)
Follow Us at Google News and WA Channel