ASIATODAY.ID, JAKARTA – Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has set the average price of Indonesian crude (Indonesian Crude Price/ICP) for August 2025 at USD66.07 per barrel, down from USD68.59 per barrel in July 2025. The decision is stated in Ministerial Decree No. 304.K/MG.03/MEM.M/2025 on Indonesian Crude Price for August 2025, issued on September 10, 2025.
According to Laode Sulaeman, Director General of Oil and Gas at ESDM, the decline was driven by a combination of increased global oil production and weakening demand as the U.S. summer driving season ended.
“The potential global economic slowdown, triggered by the U.S. imposing new tariffs on several countries, also contributed to the weakening of crude oil prices,” Laode said in Jakarta, Monday, September 15, 2025.
Key Factors Pressuring Global Oil Prices
Several elements contributed to the drop in global crude oil prices in August 2025:
Rising production from OPEC and the U.S., creating a supply surplus.
U.S. output projected to increase by 0.3 million barrels per day (y-o-y) to 22.1 million barrels per day, supported by higher productivity in shale basins.
China’s production projected to rise by 34,000 barrels per day (y-o-y) to 4.6 million barrels per day, mainly from offshore fields in the Bohai Bay and South China Sea.
The U.S. raised import tariffs on India to 50% starting August 27, 2025, due to India’s continued crude imports from Russia.
Political risks in the U.S., including the President’s plan to dismiss the Federal Reserve Governor, sparking concerns over the central bank’s independence and global economic stability.
Impact on Asia-Pacific
In the Asia-Pacific region, the decline in crude prices was further influenced by Indian refiners’ cautious approach to Russian crude purchases amid U.S. tariff pressures. In addition, several Asian refineries entered scheduled maintenance periods, leading to a further drop in regional oil consumption.
Average Crude Price Movement, August vs. July 2025
Dated Brent: down USD2.78/bbl → USD68.21/bbl.
WTI (Nymex): down USD3.22/bbl → USD64.02/bbl.
Brent (ICE): down USD2.29/bbl → USD67.26/bbl.
OPEC Basket: down USD1.26/bbl → USD69.69/bbl.
Indonesia ICP: down USD2.52/bbl → USD66.07/bbl.
This trend underlines that global crude oil prices remain under pressure, weighed down by supply surpluses, geopolitical tensions, and weakening global demand. (AT Network)
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