Indonesia crude price rises to 47.78 USD per barrel in Dec. 2020
Source: Xinhua | 2021-01-09
The Indonesia Crude Price (ICP) in December 2020 was set at 47.78 U.S. dollars per barrel, an increase of 7.11 dollars per barrel from the previous month, an official said.
The increase cannot be separated from the projection of the global economic growth after the approval of the COVID-19 mass vaccinations in Europe and America, the Ministry of Energy and Mineral Resources' spokesman Agung Pribadi said in a written statement here on Friday.
"The approval of the vaccination process fosters market optimism and contributes to global oil demands," Pribadi added.
He said that in addition to the matter of vaccination, there is an agreement among members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies to continue cutting production by 7.2 million barrels per day starting January 2021.
In December 2020, OPEC reported an increase in the organization's supply demand for 2020 by 0.1 million barrels per day compared to the previous projection of 22.2 million barrels per day, he said.
On the other hand, there was a decline in oil supply from non-OPEC countries for 2020 by 0.08 million barrels per day, lower than the previous projection, mainly from Brazil, the United States, Britain and Norway, according to him.
"OPEC projects that global economic growth for 2020 will increase by 0.1 percent compared to the previous month's projection, supported by Japan, Brazil, Russia and several other OECD (Organization for Economic Co-operation and Development) countries," Pribadi noted.
Among other sentiments of the ICP hike is market optimism regarding the trade agreement between the European Union and Britain after Brexit and the heating up geopolitical conditions in several crude oil producing countries, he said.
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