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Indonesian crude oil price rises to $83.78 per barrel in March
The price has passed the government’s assumption stipulated in the state budget set at $80 per barrel this year.
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The Oyong oil and gas rig in the Sampang block, located in the Madura Strait off the coast of East Java, is pictured in this undated photo. (SKK Migas/SKK Migas)
T
he Indonesian Crude Price (ICP) rose 4.6 percent month-to-month (mtm) to US$83.78 per barrel in March, following several disruptions to oil supplies in Asia, such as prolonged geopolitical conflict in Ukraine and the Red Sea as well as production cuts by exporting countries.
The price has passed the government’s assumption stipulated in the state budget set at $80 per barrel this year.
The United States’ worse-than-expected decrease in gasoline stocks and decline in crude oil stocks in mid-March, were among the driving factors of the price hike, according to the Energy and Mineral Resources Ministry’s ICP Team report on Tuesday.
“The Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) project strong oil demand in 2024 and 2025,” the ministry’s price team said, adding that the price hike had been greater due to an oil supply slump in the first quarter this year.
Read also: High oil prices spur upstream oil and gas investment
The closure of oil wells, bad weather and an agreement to reduce production by OPEC+ as well as disruption from Houthi attacks on Red Sea shipping lanes, had all affected the ICP, the ministry’s team said citing IEA reports.
Another factor was Ukraine’s attacks on Russian oil refineries that disrupted fuel supplies in Asia and Europe, further tightening global oil supply.
