In July alone, based on data compiled by ANTARA in Jakarta on Friday, the ESDM Ministry recorded US$70.68. The ICP type SLC also decreased by 2.03 US per barrel from US$72.05 per barrel in July 2018 to US$70.02 per barrel.
The decline in ICP prices is influenced by several factors, such as the increase in crude oil supply from non-OPEC countries.
The International Energy Agency (IEA) reports that in August 2018, the projection of crude oil supply from non-OPEC countries increased by 2 million barrels per day in 2018. So it is estimated that non-OPEC oil production would be 59.9 million barrels per day.
This was reinforced also by the OPEC report which stated that there was an increase in crude oil supplies from non-OPEC countries caused by an increase in crude oil supply in the United States.
This increase in supply was caused by an increase in oil prices in the previous month, thus encouraging increased production of shale oil.
Increased oil production is also recorded in Brazil. Brazil alone has 11 new projects in the Santos Basin area which are predicted to hold large oil reserves. In addition, there is an increase in oil sands production in Canada and Russia, as well as an increase in production from Mexico and Norway.
In addition to non-OPEC countries, OPEC countries are also known to contribute to increased oil production this period. In August 2018, there was a production increase of 41 thousand barrels per day. So that production reaches 32,323 million barrels per day. This oil production comes from several countries including Kuwait, Nigeria, UAE and Iraq.
The decline in crude oil prices in the Asia Pacific region is specifically influenced by several factors, such as the continuing trade war between the US and China which could have a negative impact on world economic and trade growth, resulting in a decrease in demand for crude oil.
In addition, Japan also experienced a decline in demand in the transportation, industrial and power generation sectors, due to increased use of gas as alternative energy.
For more information here are the developments of the average crude oil prices on the international market in August 2018 compared to July 2018 as follows:
Dated Brent decreased by US$1.73 / barrel from US$74.35 per barrel to US$72.62 per barrel.
WTI (Nymex) decreased by US$2.73 per barrel from US$70.58 per barrel to US$67.85 per barrel.
OPEC`s basketball dropped by US$1.17 per barrel from US$73.27 per barrel to US$72.10 per barrel.
Brent (ICE) fell by US$1.11 per barrel from US$74.95 per barrel to US$73.84 per barrel.
Reporting by Afut Syafril Nursyirwan
Editing by Andi Abdussalam