ASIATODAY.ID, JAKARTA – Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif set the Indonesian Crude Oil Price (ICP) for January 2024 at $77.12 per barrel.
The ICP determination is contained in the Decree of the Minister of Energy and Mineral Resources Number 139.K/MG.03/DJM/2024 concerning Crude Oil Prices for January 2024 dated February 1 2024.
“The government through the Ministry of Energy and Mineral Resources set the ICP for January 2024 at $77.12 per barrel. The average price of Indonesian crude oil in January 2024 increased compared to the previous month December 2023 of $1.61 per barrel (bbl) of $75 .51,” said Head of the Public Information Services and Cooperation Communications Bureau, Agus Cahyana Adi, Friday, February 2 2024.
Agus reflected that the weakening increase in world oil prices with ICP prices was not only due to increasing demand but also concerns about supply disruptions amid continuing geopolitical risks in the Red Sea, at the end of January 2024 which was marked by attacks on oil ships carrying naphtha.
World oil demand in the first quarter of 2024 is estimated to increase by 1.7 million barrels per day (bpd), which is influenced by China’s provision of refinery quotas, however, on the world oil supply side, there is a decline in oil supply.
“OPEC provides for a reduction in world supply in December 2023 of 400 thousand bpd to 100.9 million bpd. “Non-OPEC countries’ production is estimated to fall by 0.5 million bpd in December 2023,” added Agus.
World oil demand also occurs due to ongoing tensions between Russia and Ukraine. As per the EIA’s weekly report, US crude oil stocks decreased at the end of January 2024 by 10.4 million bbl to 420.7 million bbl. Apart from that, it also reported a decline in US oil production at the end of January 2024 by 900 thousand bpd to 12.3 million bpd.
For the Asia Pacific region, the increase in crude oil prices was also influenced by China’s economic stimulus through a decrease in the reserve requirement ratio which is expected to increase China’s economic growth.
In full, the average price of the main crude oil in January 2024 compared to December 2023 has increased to the following:
– Dated Brent rose by $2.41/bbl from $77.91/bbl to $80.32/bbl.
– WTI (Nymex) rose by $1.74/bbl from $72.12/bbl to $73.86/bbl.
– Brent (ICE) rose by $1.83/bbl from $77.32/bbl to $79.15/bbl.
– OPEC basket rose by $0.90/bbl from $79.00/bbl to $79.90/bbl.
– The average ICP of Indonesian crude oil increased by $1.61/bbl from $75.51/bbl to $77.12/bbl. (AT Network)
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