ASIATODAY.ID, JAKARTA – Indonesian Crude Price (ICP) in August 2024 is set at US$78.51/barrel. This figure was determined through the Decree of the Minister of Energy and Mineral Resources Number 348.K/MG.03/DJM/2024 concerning Crude Oil Prices for August 2024, dated September 2 2024.
September ICP decreased from the previous month’s ICP of USD82/barrel.
“This month’s ICP has been set at US$78.51/barrel, down from the previous month’s US$82/barrel. This decrease is in line with the decline in main crude oil prices on the international market which was influenced by market concerns about falling demand. Negative market sentiment was also strengthened with the easing of political tensions in the Middle East,” explained the Head of the Communications, Public Information Services and Cooperation Bureau of the Ministry of Energy and Mineral Resources, Agus Cahyono Adi in Jakarta, Friday, September 6 2024.
The decline in oil prices also occurred due to OPEC+’s plan to continue voluntary production cuts starting in October 2024, which means an increase in oil supply at the end of 2024.
In addition, the International Energy Agency (IEA) in its August 2024 report stated that world crude oil production increased by 230 thousand bpd to 103.4 million bpd, as OPEC+ supplies gradually returned to the market and non-OPEC+ supplies increased.
“The IEA and OPEC lowered their oil demand growth projections, especially for 2025, with most of the reasons being the economic slowdown and weakening China’s oil consumption,” said Agus.
Meanwhile, for the Asia Pacific region, the decline in crude oil prices was not only caused by these factors, but was also influenced by the slowdown in China’s economic growth, which was indicated by the decline in the Purchasing Manager Index (PMI), both for the manufacturing and non-manufacturing sectors, as well as the decline in demand. oil and fuel oil in China due to the increased use of electric vehicles and vehicles fueled by liquefied natural gas.
OPEC also revised down its estimate for Japan’s economic growth in 2024 by 0.1% to 0.2% compared to the previous month’s publication due to the weak investment climate in Japan in Semester 1 of 2024.
The development of the average price of the main crude oil in August 2024 compared to July 2024 has decreased to the following:
– Dated Brent fell by US$4.40/bbl from US$85.31/bbl to US$80.91/bbl.
– WTI (Nymex) fell by US$5.05/bbl from US$80.48/bbl to US$75.43/bbl.
– Brent (ICE) fell by US$5.00/bbl from US$83.88/bbl to US$78.88/bbl.
– The OPEC basket fell by US$6.03/bbl from US$84.43/bbl to US$78.40/bbl.
– The average ICP for Indonesian crude oil fell by US$3.49/bbl from USF82.00/bbl to US$78.51/bbl. (AT Network)
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