February ICP set at USD95.72 per barrel

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 96.Pers/04/SJI/2022

Date: 8 March 2022

February ICP set at USD95.72 per barrel

Disruptions to oil supply on the international market due to the geopolitical conflict between Russia and Ukraine have impacted on Indonesian Crude Prices (ICP). The Ministry of Energy and Mineral Resources (EMR) has pegged an average ICP for February 2022 at USD95.72 per barrel, soaring by USD9.83 from the January 2022 ICP of USD85.89.

The reference price is set out in Decision of Minister of Energy and Mineral Resources Number 18.K/MG.03/DJM/2022 on Indonesian Crude Oil Prices for February 2022, which was determined on March 1, 2022.

"The Russia-Ukraine conflict has had a major impact on global crude oil supply. The market is starting to worry that tensions will create shortages and interfere with distribution," said Head of Communication, Public Information Services, and Cooperation Bureau of the Ministry of EMR, Agung Pribadi, in Jakarta on Tuesday (8/3).

According to the analysis of the Indonesian Crude Oil Price Team, continued Agung, the International Energy Agency (IEA) in February 2022 reported an increase of 3.2 million barrels of world's oil demand per day, to 100.6 million barrels per day, in the projected annual growth in 2022 as a result of the easing of Covid-19 restrictions.

In the same month, OPEC reported an increase in its projection of global oil demand in 2022 of 17,000 barrels per day to 100.8 million barrels per day, compared to the projection in the previous month's report. Additionally, OPEC has revised the projection of OPEC non-members' oil supply in 2022 down by 60,000 barrels per day to 66.61 million barrels per day compared to the projection it made in the previous month.

Still, another influencing factor is supply disruptions in the United States. The US Energy Information Administration (EIA) in its weekly report revealed a decrease in the United States' stockpiles at the end of February 2022 compared to stock at the end of the previous month. Gasoline stocks fell by 3.5 million barrels to 246.5 million barrels, while distillate stocks dropped by 3.0 million barrels to 119.7 million barrels.

For the Asia Pacific region, the increase in crude oil prices was influenced by the above factors as well as the increase in estimated troughput of 35 combined refineries in China, namely the refineries of Sinopec, CNOOC, Petrochina and Sinochem Corp, in February 2022 of 3.2% compared to last month, to 7.2 million barrels per day.

"Japan continues to provide a 5-yen gasoline subsidy per liter to oil distributors. The subsidy have been given out since January 27, 2022, and evaluations are carried out every week as an effort of the Japanese government to bring down high retail gasoline prices in the country," Agung explained.

The complete developments in the average price of the main crudes in February 2022 compared to January 2022 are as follows:

Dated Brent soared by USD10.97 per barrel, from USD87.22 per barrel to USD98.19 per barrel.

WTI (Nymex) grew by USD 8.65 per barrel, from USD 82.98 per barrel to USD 91.63 per barrel.

Brent (ICE) rose by USD8.53 per barrel, from USD85.57 per barrel to USD94.10 per barrel.

The OPEC basket surged by USD8.83 per barrel, from USD85.13 per barrel to USD93.96 per barrel. (IY)

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

Agung Pribadi (08112213555)

Share This!