ASIATODAY.ID, JAKARTA – The average price of Indonesian Crude Price (ICP) in November 2023 is set at $79.63 per barrel through Decree of the Minister of Energy and Mineral Resources Number 407.K/MG.03/DJM/2023 dated December 2 2023 regarding Crude Oil Prices for November 2023.
This figure decreased by $7.09 per barrel from $86.72 per barrel in October 2023. The decline in ICP prices was motivated by the fall in the price of primary crude oil on the international market.
Head of the Communications Bureau, Public Information Services of the Ministry of Energy and Mineral Resources, Agus Cahyono Adi, said that the decline in crude oil prices on the international market was influenced by OPEC’s projection of an increase in crude oil production for 2023 of 0.3 million barrels per day compared to the month’s report. previously.
“The increase in production came from Norway and the Organization for Economic Cooperation and Development (OECD) America,” said Agus Cahyono in Jakarta, Saturday, December 9 2023.
In addition, the International Energy Agency (IEA) stated that global crude oil production in October 2023 increased by 320 thousand barrels per day to 102 million barrels per day, up from the previous month, which came from the United States and Brazil.
“OPEC estimates that global crude oil demand will decline by 0.06 million barrels per day for the third quarter of 2023, compared to estimates in the previous month’s report,” added Agus.
The slowdown in global economic growth to 2.9 percent from the previous estimate of three percent, especially in Europe, is another factor causing the decline in crude oil prices in November 2023. The European Central Bank is also still maintaining its benchmark interest rate to handle high inflation.
Apart from that, other production factors that influence crude oil prices include:
1. Geopolitical tensions in the Middle East have no impact on world crude oil supply and trade traffic.
2. Refinery margins decreased in October, especially for the cracking type for gasoline, in line with the decline in the price of this product on the market.
3. EIA reported that United States commercial crude oil stocks increased by 10.6 million barrels at the end of November 2023 to 431.7 million barrels compared to the end of October 2023.
4. Global refinery intake decreased in October by 1.4 million barrels per day to an average of 80.1 million barrels per day compared to the previous month.
Agus added that another factor was the increase in US crude oil exports to 4.6 million barrels per day, which was the highest since March 2023.
For the Asia Pacific region, crude oil prices fell due to market concerns about slowing Japanese economic growth. Japan’s gross domestic product fell to an annualized 2.1% in the third quarter of 2023, after increasing 4.8% in the second quarter.
“The decrease in refinery intake in China, India and South Korea was caused by a decrease in refinery margins for middle distillate types,” concluded Agus Cahyono.
In full, the development of the average price of the main crude oil in November 2023 compared to October 2023 is as follows:
* Dated Brent fell by $7.87/bbl from $91.05/bbl to $83.18/bbl.
* WTI (Nymex) fell by $8.09/bbl from $85.47/bbl to $77.38/bbl.
* Brent (ICE) fell by $6.67/bbl from $88.70/bbl to $82.03/bbl.
* OPEC basket fell by $6.86/bbl from $91.78/bbl to $84.92/bbl. (AT Network)
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