Demand Grows, March ICP Rises to USD63.50 per barrel

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 124.Pers/04/SJI/2021

Date: 7 April 2021

Demand Grows, March ICP Rises to USD63.50 per barrel

The average Indonesian crude oil price (Indonesian Crude Price/ICP) for March 2021 rises by 5.2%, or USD3.14, to USD63.50 per barrel compared to price in February 2021 of USD60.36 per barrel.

The rise results from market optimism for global economic activities and higher crude demand due to effective control of crude supply.

"The Indonesian crude price average for March 2021 is set at USD63.50 per barrel," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources (EMR) Agung Pribadi in Jakarta on Wednesday (7/4), quoting Decision of Minister of EMR Number 64.K/MG.03/MEM.M/2021.

The price of Indonesian main crude Sumatran Light Crude (SLC) for March 2021 also increases to USD64.06 per barrel, from previously USD61.42 per barrel in February 2021.

Separately, the Indonesia Oil Price Team stated that besides market optimism and higher crude demand, price hike on the international market has been contributed by OPEC+ deal to continue production cut to April 2021 and the obedience level of OPEC+ in February 2021 reaching 113%.

"The price hike was furthered by the approval of the USD1.9 trillion US stimulus package which has been projected to improve the US and global economy," added the Price Team.

A report published by International Energy Agency (IEA) in March 2021 stated that the global crude demand in 2021 is projected to grow by 5.5 million barrels per day.

According to the IEA, the global crude supply in February 2021 dropped by 2 million barrels per day due to extreme cold in the US and additional production cut by Saudi Arabia of 1 million barrels per day.

In March 2021, OPEC released a statement that the global crude demand in 2021 is projected to rise by 0.22 million barrels per day, from 96.05 million barrels per day to 96.27 million barrels per day, compared to projection in the previous month.

According to a publication of the US Energy Information Administration (EIA) in March 2021, the US gasoline stock is down by 13 million barrels to 230.5 million barrels compared to stok in February 2021.

"Finally, the number of rigs in US fell for the first time since November 2020," explained the Price Team.

For the Asia Pacific region, higher oil price has also been influenced by refinery throughput (processing level) in China which hit record high 14.3 million barrels per day.

The development of global oil price average on the international market is as follows:

- Dated Brent is up by USD3.41 per barrel, from USD62.22 per barrel to USD65.63 per barrel.

- WTI (Nymex) rises by USD3.30 per barrel, from USD59.06 per barrel to USD62.36 per barrel.

- Basket OPEC increases by USD3.59 per barrel, from USD61.04 per barrel to USD64.63 per barrel.

- Brent (ICE) climbs by USD3.42 per barrel, from USD62.28 per barrel to USD65.70 per barrel. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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