Indonesian Crude Oil Price (ICP) for June 2024 Drops to US$ 79.31 per Barrel

Jakarta,- The Ministry of Energy and Mineral Resources (ESDM) has set the June 2025 Indonesian Crude Price (ICP) at US$ 79.31 per barrel. 

Head of the Communication, Public Information Services, and Cooperation Bureau of the Ministry of Energy and Mineral Resources Agus Cahyono Adi said, based on the Decree of the Minister of Energy and Mineral Resources Number 327.K/MG.03/DJM/2024 on the June 2024 Crude Oil Price issued on July 1, 2024, the ICP in June 2024 has decreased compared to the previous month.

"The ICP for June 2024 is set at US$ 79.31 per barrel, a decrease of US$ 0.47 from the average price in May 2024 which stood at US$ 79.78 per barrel," said Agus in a press release, quoted on Sunday (7/7). 

In accordance with the analysis of the Indonesian Crude Oil Price Team, Agus explained, the decline in major international crude oil prices was influenced, among others, by market doubts about world crude oil demand.

One indicator is the increase in crude oil stocks in the United States, which rose by 4.8 million barrels to 460.7 million barrels.

Meanwhile, US gasoline stocks increased by 3.0 million bbl to 233.9 million bbl compared to the previous month.

Another factor affecting the international market was profit-taking that occurred when crude oil prices were strengthening.

This situation was triggered by concerns over oil supply disruptions due to geopolitical upheaval in Russia and the Middle East.

Furthermore, market concerns also arose from US economic conditions.

The US Central Bank delaying interest rate cuts strengthened the US Dollar exchange rate, which then made investors prefer to shift their investments from the commodity market to the US Dollar.

"In addition, there are market concerns about an increase in crude oil supply, because the results of the OPEC + meeting in early June 2024, among others, agreed to start reducing production cuts at the beginning of Q4 2024," Agus added.

Data from the International Energy Agency (IEA) also showed that in June 2024, world oil supply increased by 520 thousand barrels per day, reaching a total of 102.5 million barrels per day.

However, the IEA also lowered its projection of world oil demand growth for 2024 by 100,000 barrels per day, to 960,000 barrels per day.

The development of major crude oil prices in June 2024 compared to May 2024 was relatively stable with the following details:

- Dated Brent increased by US$ 0.56/bbl from US$ 82.05/bbl to US$ 82.61/bbl.

- WTI (Nymex) increased by US$ 0.08/bbl from US$ 78.62/bbl to US$ 78.70/bbl.

- Brent (ICE) was stable from US$ 83.00/bbl to US$ 83.00/bbl.

- OPEC Basket decreased by US$ 0.54/bbl from US$ 83.59/bbl to US$ 83.05/bbl.

- Average Indonesian crude oil ICP decreased by US$ 0.47/bbl from US$ 79.78/bbl to US$ 79.31/bbl.

Sources : Jul 07.24

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