Recently, the OPEC issued a policy to extend the oil output cuts until the end of 2018. This policy then led to a rise in global oil prices that also affected the ICP.
Based on data from the ESDM Ministry received by Antara in Jakarta on Friday, the average ICP rose to US$60.90 per barrel in December 2017, up by $1.56 per barrel from $59.34 per barrel in the previous month. This figure sets Indonesia`s record highest crude oil price throughout 2017.
The increase in ICP is inseparable from the global increase in oil price that is influenced by several factors.
As noted in the OPEC publication, crude oil production from OPEC countries had decreased by 0.13 million barrels per day (BOPD) in November 2017. Hence, production reached 32.45 million BOPD. Total oil production in November fell from 32.58 million BOPD recorded in October 2017.
It was reported that a shutdown of North Sea Forties, the largest oil pipeline in the United Kingdom that drains some 450 thousand BOPD, has also affected the increasing global oil prices at the end of 2017.
International events that also contributed to the rise in global oil prices include the explosion at the New York Port Authority bus station, the strike of oil workers in Nigeria, and the increasing use of gasoline in the United States during the Christmas holiday, as well as the increasing geopolitical risks in the Middle East, the US president`s statement on Jerusalem, and the rising demand for crude in China.
The global crude oil prices recorded as of December 2017 were Dated Brent at $64.19 per barrel; Brent, $64.09 per barrel; and WTI (Nymex), $57.95 per barrel.
EDITED BY INE/H-YH