ASIATODAY.ID, JAKARTA – Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia has set the average Indonesian Crude Price (ICP) for February 2025 at USD74.29 per barrel, down USD2.52 per barrel from the January 2025 ICP of USD76.81 per barrel.
The decline in ICP is in line with the decline in major crude oil prices on the international market, one of which is influenced by market concerns over the potential decline in world oil demand due to the United States (US) tariffs for Canada and Mexico.
In addition, the decline in global crude oil prices was also driven by the easing of geopolitical risks regarding the potential end of the war between Russia and Ukraine and indications of potential reductions in sanctions against Russia, triggering concerns about oversupply.
“One of the causes of the decline in crude oil prices on the international market includes market concerns over the potential decline in world oil demand due to the imminent imposition of US tariffs on Canada and Mexico, as well as the potential imposition of US import tariffs on European Union countries of up to 25 percent,” explained Acting Head of the Bureau of Communication, Public Information Services, and Cooperation of the Ministry of Energy and Mineral Resources, Chrisnawan Anditya in Jakarta, quoted on Saturday, March 15, 2025.
Chrisnawan also said that after the US tariffs were set, China set a retaliatory tariff policy for the US that would take effect on February 10, 2025 on crude oil, vehicles, and agricultural machinery of 10%, and coal and LNG of 15%. In addition, the International Energy Agency (IEA) in its February publication stated that the supply of non-OPEC countries experienced an increase in production of up to 200 thousand barrels per day, to 14.31 million barrels.
Meanwhile, for the Asia Pacific region, the decline in crude oil prices, in addition to being caused by these factors, was also influenced by market concerns over China’s economic conditions after the publication of the Caixin Purchasing Manager Index China of 51, which was lower than market expectations. There was also an unplanned shutdown at the Crude Distillation Unit at the Kawasaki Refinery, Japan with a capacity of 172.1 thousand barrels per day and is planned to be re-operated in mid-February 2025.
The full development of major crude oil prices in February 2025 compared to January 2025 is as follows:
– Dated Brent fell by USD4.08 per barrel from USD79.23 per barrel to USD75.16 per barrel.
– WTI (Nymex) fell by USD3.89 per barrel from USD75.10 per barrel to USD71.21 per barrel.
– Brent (ICE) fell by USD3.39 per barrel from USD78.35 per barrel to USD74.95 per barrel.
– OPEC basket fell by USD2.56 per barrel from USD79.45 per barrel to USD76.89 per barrel.
– The average ICP of Indonesian crude oil fell by USD2.52 per barrel from USD76.81 per barrel to USD74.29 per barrel. (AT Network)
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