The increase in the COVID-19 case globally had an impact on the Indonesian Crude Price (ICP) in September, said the energy and mineral resources Ministry (ESDM). During last month, the ICP fell to US$37.43 a barrel from August of $41.63 per barrel.
The virus outbreak has a domino effect on the demand and price of crude oil in the international market, according to the ministry. Apart from the spread of COVID-19, OPEC+ steps in cracking down on countries that fail to comply the production cuts, and the extraordinary meeting planned in this month has become a negative sentiment for the oil market.
Another reason is the availability of crude oil, gasoline, and distillates in the United States (US) in mid-September. Based on a report by the US Energy Information Administration, crude oil stocks fell by 1.6 million barrels, gasoline fell by 4 million barrels, and distillates fell by 3.4 million barrels. The ministry stated, “Oil prices are also affected by the weakening of US Dollar against other major currencies.”
