... we look at the configuration of the oil production in 2014."Jakarta (ANTARA News) - Indonesia`s Finance Minister M. Chatib Basri said the government would review the Indonesia Crude Price (ICP) as the impact of the Middle East conflict, especially a coup in Egypt.
"We will review it later, it cannot be done in one day," said Chatib after a coordination meeting at the Coordinating Ministry for Economic Affairs, here on Monday.
Chatib admitted that there is little pressure on ICP causing it to rise. However, he said there would be an increase in oil supplies in 2013 and 2014.
"Don`t make a fast conclusion that our ICP is rising we shall wait the development," he said.
He said that the political pressure could affect the world market, especially in the U.S. where the price of crude had reached 101 dollars a barrel, which was originally only 99 dollars per barrel.
"But, we look at the configuration of the oil production in 2014. Production is likely to increase because of the higher demand. So we shall see how far this political effect will play out," he said.
However, Chatib would not take any sudden conclusion due to the reactive market condition.
"I said the effect could not be seen that day because market reacts instantaneously. If the supply is plenty then it will be back to normal. I do not want to rush saying that the ICP is rising in just a few days," he said.
Under New York`s main contract, the light sweet crude for August delivery rose 28 cents to 103.50 dollars per barrel in the morning trade and the Brent North Sea crude for August delivery rose 25 cents to 107.97 dollars.
Rising oil prices also triggered a rise in Asian trade on Monday after the US jobs data beat expectations, boosting confidence in the world`s biggest economy.
Crude oil that is priced in the U.S. dollar also triggered depreciation of currencies, including Rupiah that weakens by five points to Rp9.945 compared to the previous position Rp9.940 per U.S. dollar.
(Juwita Trisna Rahayu/Uu.H-YH)
Editor: Priyambodo RH
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