Growth Demands ICP Price Increase In April 2018
By : Hariyanto And Aldo Bella Putra | Friday, May 04 2018 - 21:00 IWST
INDUSTRY.co.id - Jakarta - Indonesia Crude Price (ICP) price rose again in April 2018, from ICP price in March of US $ 61.87 per barrel, to US $ 67.43 per barrel, up US $ 5.56 per barrel.
The increase also occurred in the national oil price of Sumatera Light Crude (SLC) to US $ 68.39 per barrel. SLC rose by US $ 5.54 per barrel from March of US $ 62.85 per barrel.
The increase in ICP and SLC prices is in line with the increase in the price of crude oil in international markets in April 2018 compared to March 2018, as recorded by the Oil Price Team of the Ministry of Energy and Mineral Resources (ESDM):
- Dated Brent rose by US $ 5.90 per barrel from US $ 65.90 per barrel to US $ 71.80 per barrel.
- Brent (ICE) rose by US $ 5.04 per barrel from US $ 66.72 per barrel to US $ 71.76 per barrel.
- WTI (Nymex) rose by US $ 3.56 per barrel from US $ 62.77 per barrel to US $ 66.33 per barrel.
- OPEC basketball (s.d. April 27, 2018) rose by US $ 4.54 per barrel from US $ 63.76 per barrel to US $ 68.30 per barrel.
The rise in world crude oil prices was influenced by the report of the Organization of the Petroleum Exporting Countries (OPEC) which noted that growth in oil demand was adjusted to be higher by 30,000 barrels per day in April 2018 to 1.63 million barrels per day in 2018.
OPEC also noted a growing trend of global economic growth of 3.8%. Meanwhile, the International Energy Agency (IEA) reported oil demand in 2018 grew by 1.5 million barrels per day. The demand for Organization for Economic Cooperation and Development (OECD) in the first quarter of 2018 was also revised up by 315 thousand barrels per day.
The increase in oil prices was also influenced by the fall in US distillate fuel oil stock in April 2018 of 6.3 million barrels compared to March 2018 to 122.7 million barrels; the April 2018 decrease of US gasoline stock by 2.8 million barrels compared to March 2018, to 236.8 million barrels; and an increase in refinery processing activity that recovered, after two years of relatively low growth.
Increased geopolitical tensions in the Middle East region is also suppose to be one of the drivers of the increase in world crude oil prices.
For the Asia Pacific region, crude oil price increases are influenced by increased demand for oil for India's infrastructure development and petrochemical industry in South Korea, in addition to the high economic growth in India and China.