World Oil Prices Rise, ICP Cuts Up to US $ 65.59 per Barrel

INDUSTRY.co.id - Jakarta - In January 2018, the Indonesian Crude Price (ICP) crude oil price increased compared to December 2017. The average ICP rose by US $ 4.69 per barrel to US $ 65.59 per barrel from US $ 60.90 per barrel in December 2017.

c noted that the increase in average price of Indonesia's crude oil follows the average price of major crude oil in the international market in January 2018 compared to December 2017.

Dated Brent from US $ 64.19 per barrel to US $ 69.18 per barrel (up US $ 4.99 per barrel). Brent (ICE) from US $ 64.09 per barrel to US $ 69.08 per barrel (up US $ 4.99 per barrel). WTI (Nymex) from US $ 57.95 per barrel to US $ 63.67 per barrel (up US $ 5.72 per barrel). OPEC basket from US $ 62.06 per barrel to US $ 66.88 per barrel (up US $ 4.82 per barrel).

The Organization of the Petroleum Exporting Countries (OPEC) said that major crude oil price increases in the international market were triggered by an agreement on production restrictions between OPEC and Non-OPEC countries by the end of November 2017.

The projected global demand for crude oil in 2018 increased 0.06 million barrels per day (bpd) to 98.51 million bpd, as well as the decline in US rigs from 931 rigs to 924 rigs in December 2017.

Meanwhile, the International Energy Agency's IEA (International Energy Agency) reported that oil prices are currently affected by decline in crude oil production from OPEC countries in December 2017 by 0.06 million bpd, from 39.18 million bpd to 39.12 million bpd compared to the previous month, as well as the production of Non-OPEC countries, down from 58.95 million bpd to 58.60 million bpd (down 0.35 million bpd).

The weakening of the US Dollar against other currencies, especially the Euro and rising demand for heating oil in the United States due to winter are another factor triggering high oil prices, as reported by EIA (Energy Information Administration) - USA, in addition to geopolitical conditions of the Middle East and Africa are still turbulent.

For the Asia-Pacific region, crude oil price increases are also influenced, among others, increased demand for oil in Vietnam along with declining supply of oil in the country, as well as increased crude oil throughput in refineries in South Korea, Taiwan and China and the explosion of the gasoil production unit producing 200 thousand bpd in Taiwan.