Extending Restrictions on OPEC Crude Oil Production Affects ICP Rise Throughout 2017
By : Hariyanto And Aldo Bella Putra | Friday, January 05 2018 - 19:00 IWST
INDUSTRY.co.id - Jakarta - The Organization of the Petroleum Exporting Countries (OPEC) has issued a policy to extend the time limiting crude oil production until the end of 2018. The policy also affects the rise of world oil hanga, which also affects the rise of Indonesian Cruide Price (ICP).
Quoted from the Ministry of Energy's ESDM website on Friday (5/1/2018), the Indonesian Oil Price Team of the Ministry of Energy and Mineral Resources (ESDM) released, the average ICP rose to US $ 60.90 per barrel in December 2017, $ 1.56 a barrel from US $ 59.34 per barrel in the previous month. This figure sets Indonesia's record high crude oil prices throughout 2017.
The increase of ICP is inseparable from the increase of world oil price which is influenced by several factors. In its OPEC publication, crude oil production from OPEC countries in November 2017 decreased by 0.13 million barrels per day.
So the production becomes 32.45 million barrels per day. Total oil production in November was down from October 2017 which amounted to 32.58 million barrels per day.
It is also known that the largest oil pipeline in the United Kingdom, North Sea Forties, which drains about 450,000 BOPD of oil shut down. This disruption also affects the increasing world oil prices at the end of 2017.
There were also international events that contributed to the rise in world oil prices such as the explosion at the New York Port Authority bus station, the strike of oil workers' work in Nigeria, the increasing use of gasoline in the United States at Christmas Holiday, as well as the increasing geopolitical risks in the Middle East the US president's statement on Jerusalem, and rising demand for crude in China.
The price of crude oil per December 2017 is Dated Brent: US $ 64.19 per barrel, Brent: US $ 64.09 per barrel, WTI (Nymex): US $ 57.95 per barrel.