September ICP Rises to USD72.20 per Barrel

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 356.Pers/04/SJI/2021

Date: 7 October 2021

September ICP Rises to USD72.20 per Barrel

The Indonesian Crude Price (ICP) of September 2021 rose by USD4.40 per barrel to USD72.20 per barrel after it was set at USD67.80 per barrel in August 2021. Price has boomed following disruption to the global supply of crude.

"The Minister of EMR decided that the ICP of September 2021 was fixed at USD72.20 per barrel, as set out in Decision of Minister of EMR Number 192.K/HK.02/MEM.M/2021 on Determination of Indonesian Crude Price of September 2021," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources (EMR), Agung Pribadi, in Jakarta on Thursday (7/10).

Agung went on to explain that prices in the international market had soared because crude production along the Gulf Coast of the United States stopped due to Hurricane Ida and Tropical Storm Nicholas. As a result, as much as 30 million barrels of crude supplies are potentially lost.

Additionally, crude supply from Libya is disrupted because demonstrations closed the country's export terminal.

In September 2021, OPEC lowered its projection of supply from Non-OPEC countries to 63.85 million barrels per day, decreasing by 0.15 million barrels per day from the projection in the previous month. Meanwhile, a report by the IEA in the same month showed the world's crude supply in August 2021 declined by 540,000 barrels per day to 96.1 million barrels per day.

OPEC also revised its projection of the world's demand for crude in 2021 to 96.68 million barrels per days, picking up by 0.11 million barrels per day compared to what it projected in the previous month.

"The analysis results of the Indonesia Oil Price Team show there are other factors that strongly affect the ICP, namely the exchange rate of US Dollar to several currencies, especially Euro, tends to decline and the drastic increase in the global prices of natural gas toward the winter because of a shortage of supply. Crude has become a substitute of energy source, and this has been estimated to drive up crude demand by 550,000 barrels per day," Agung explained in detail.

For the Asia Pacific region, the surge in crude price has also been influenced by the ever-growing demand for gasoline in China. China's gasoline demand in September 2021 is estimated to reach the pre-Covid-19 pandemic level. At the same time, the relaxation of activity restrictions in India due to Covid-19 has boosted gasoline demand in the country.

The developments of main crudes average prices in the international market in September 2021 compared to August 2021 are as follows:

- Dated Brent rises by USD3.77 per barrel, from USD70.81 per barrel to USD74.58 per barrel.

- WTI (Nymex) grows by USD3.83 per barrel, from USD67.71 per barrel to USD71.54 per barrel.

- Basket OPEC picks up by USD3.37 per barrel, from USD70.33 per barrel to USD73.70 per barrel.

- Brent (ICE) is up by USD4.37 per barrel, from USD70.51 per barrel to USD74.88 per barrel. (IY)

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

Agung Pribadi (08112213555)

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