The ICP increased by $4.71 to $68.31 per barrel in April 2019, from $63.60 per barrel a month earlier.
The new oil price has been stipulated in Energy and Mineral Resources Minister's Regulation No. 75 of K/12/MEM/2019, dated May 6, 2019, Chief of the Communication, Public Information, and Cooperation Service at the Energy and Mineral Resources Ministry Agung Pribadi noted in a written statement released on Wednesday.
The ICP hike was driven by a hike in the global crude prices owing to rising political tensions. "Several countries, including the United States, which will no longer renew sanctions exemptions to nations importing oil from Iran and Venezuela, and a civil war in Libya have been the key contributing factors (to the ICP hike)," he stated.
The other factors comprised the policy to halt the supply of almost 700 thousand barrels per day of crude oil from Russia to several European nations through the Druzhba pipelines after being contaminated by chloride, thereby having the potential to destroy the refinery.
Moreover, the demand for sweet medium/heavy crude was high in accordance with the enforcement of the International Maritime Organization (IMO) Regulation of 2020 on the limit of sulphuric content in marine fuel.
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