The average ICP for March 2022 is set at US$113.50 per barrelJakarta (ANTARA) - Indonesian Crude Price (ICP) hit a record high of US$113.50 per barrel in March 2022 due to the Russia-Ukraine conflict, which pushed up crude prices in the global market, the government said.
The disruption in the global crude supply due to the war in East Europe caused ICP to rise by US$17.78 per barrel to US$113.50 per barrel in March from US$95.72 per barrel in February this year.
The average ICP is stated in the Energy and Mineral Resources Minister's Decree No. 33.K/MG.03/DJM/2022 concerning ICP for March 2022 until April 2022.
"The average ICP for March 2022 is set at US$113.50 per barrel," according to the fourth dictum of the decree, accessed from Jakarta on Thursday.
Related news: Jokowi seeks prompt action, sympathetic statements from ministers
In addition to global supply disruption, the imposition of sanctions and failure of production infrastructures in crude oil producing countries also caused a surge in global crude prices.
The Indonesia Oil Price Team warned that the imposition of Western countries' sanctions on Russia's crude oil exports will potentially add to the global crude supply deficit once demand begins to increase.
Meanwhile, conflict among the Organization of Petroleum Exporting Countries Plus (OPEC+) members, coupled with reports of sabotage in western African countries, and civil war in Libya could likely disrupt oil production.
Related news: Lawmaker calls for sanctions on industry actors using subsidized fuel
The team predicted the sanction on Russia's oil exports is also expected to reduce global crude supply by 1.2 million–4.5 million barrels per day.
Currently, OPEC+ is sticking to the initial agreement to increase supplies by only 400 thousand barrels per day. Meanwhile, Saudi Arabia and the United Arab Emirates, who are producers with large deposits and therefore, able to increase production instantly, have not expressed their readiness to raise production.
The International Energy Agency (IEA) has predicted that the deficit in balanced global crude supply and demand could reach 700 thousand barrels per day in the second quarter of 2022.
Related news: Cooking oil cash assistance to facilitate small vendors: President
Related news: President Jokowi visits Kedaton Temple in Muaro Jambi
Translator: Sugiharto Purnama, Suharto
Editor: Fardah Assegaf
Copyright © ANTARA 2022
