The Ministry of Energy and Mineral Resources (ESDM) recorded the Indonesian Crude Price (ICP) in July 2018 increased to US$70.68 per barrel, or up US$0.32 a barrel from the previous month of US$70.36 per barrel. The increase is in line with world demand for crude oil in the international market. A similar increase occurred in Indonesia’s crude oil types of Sumatra Light Crude (SLC) rose by US$1.32 per barrel from US$70.73 per barrel to US$72.05 per barrel.
A team of Indonesian crude oil price reported the ICP increased due to rising demand for crude oil in the international market. The International Energy Agency (IEA) estimates that global crude oil demand growth this year increased by 1.4 million barrels per day to 99.1 million barrels per day.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) said the increase in global crude oil growth in 2018 due to an increase in oil demand from members of the Organization for Economic Co-operation and Development (OECD) and non-OECD.
The increase was coupled with a decrease in the supply of crude oil from oil-producing OPEC members such as Iran, Libya, Angola, and Venezuela. The same thing is done by the United States, the country is reducing the stock and production of crude oil in the global market into 241.2 million barrels, down 2.8 million barrels.
Lodging Asia Pacific region, the increase in crude oil prices affected by the increase in China’s infrastructure development which causes an increase in China‘s demand for crude oil.