Indonesian crude prices (ICP) reached US$67.18 per barrel in December, increase US$3.92 from US$63.26 per barrel in the previous month, ESDM reported. This is the highest figure since May, mainly driven by OPEC countries agreed to extend and increase oil production cuts by 500,000 barrels per day to 1.7 million barrels per day starting this year. The ICP SLC also increases to US$67.61 per barrel, rising US$3.97 from US$63.64 per barrel.
“The increased prices are also supported by trade agreements between the United States (US) and China that encourage global economic growth. So that the demand for crude oil increases,” the ministry noted.
For the Asia Pacific region, the increase in crude oil prices was influenced by China’s crude oil imports, which reached a record high as the operation of the teapot refineries was maximal to spend the year’s import quota. That way, China will increase the quota of oil imports this year.
In addition, demand for crude oil rose very rapidly, in China at 5.5% per year and India at 5.1% per year. While oil demand in the US has only risen 0.5% per year in the last decade.
