One of the factors affecting oil prices is the agreement reached during the first round of the US-China trade negotiations, thereby raising the global oil market’s optimism, Chief of the Communication, Public Information Service and Cooperation Bureau of the Energy and Mineral Resources Ministry Agung Pribadi remarked in Jakarta on Friday.
“In November 2019, the global oil prices rose owing to several factors, including the agreement between the US and China. In addition, the European Union has put Brexit on hold until January 2020. This is a positive signal for the global oil market,” he stated.
The Indonesian Oil Price Team noted that the oil price hike was spurred by the market expectation that OPEC+ member nations will extend the period of cutting production, and if possible, increase the volume of production cut during a meeting on December 5, 2019.
According to the Indonesian Oil Price Team’s note, the average crude price in the international market increased in November 2019 as compared to a month earlier, with Dated Brent rising US$3.30, from US$59.72 to US$63.02 per barrel.
Meanwhile, WTI (Nymex) surged US$3.06, from US$54.01 to US$57.07 per barrel; OPEC Basket rose US$3.02, from US$59.88 to US$62.90 per barrel; and Brent (ICE) increased US$3.08, from US$59.63 to US$62.71 per barrel.
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