September ICP is Down to USD37.43/Barrel

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 294.Pers/04/SJI/2020

Date: 7 October 2020

September ICP is Down to USD37.43/Barrel

The increase in global Covid-19 cases has impacted the Indonesian Crude Price (ICP) of September 2020. According to a calculation by the Indonesian Oil Price Team, the September ICP is down by USD4.2/barrel to USD37.43/barrel compared to the August ICP of USD41.63/barrel.

Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources (EMR), Agung Pribadi, said that the developments of the Covid-9 pandemic have made market players re-calculate the global oil demand. "The spread of the Covid-19 within the last month has triggered a marked domino effect on (crude) demands and prices on the international market," said Mr. Pribadi in Jakarta on Wednesday (7/10).

The September ICP is set out in Decision of Minister of EMR Number 191 K/12/MEM/2020 on Stipulation of Indonesian Crude Oil Price of September 2020 that starts to apply from 2 October 2020.

Besides the Covid-19 spread, OPEC+ step to take action against member states not complying with the production cut rule and the plan for the organization's extraordinary meeting in October have aroused negative sentiments against the September ICP.

Another contributing factor is the availability of US crude oil, gasoline, and distillate in mid-September. Based on a report of US Energy Information Administration (EIA), the country's crude oil stock dropped by 1.6 million barrels, gasoline by 4 million barrels, and distillate by 3.4 million barrels. "Oil prices are also affected by the weakening exchange rate of US dollar against other major currencies," Mr. Pribadi explained.

Although the world's oil prices strengthened at the end of last week due to the economic stimulus package introduced by the US government, the rise could not lift the oil prices beyond those of the previous month.

The average prices of the major crude oils on the international market of September 2020 compared to those of August 2020 are as follows:

Dated Brent drops by USD4.01 per barrel, from USD44.82 per barrel to USD40.81 per barrel.

WTI (Nymex) drops by USD2.76 per barrel, from USD42.39 per barrel to USD 39.63 per barrel.

Brent (ICE) drops by USD3.15 per barrel, from USD45.02 per barrel to USD41.87 per barrel. (IY)

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

Agung Pribadi (08112213555)

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