JAKARTA (TheInsiderStories) – The increase in the COVID-19 case globally had an impact on the Indonesian Crude Price (ICP) in September, said the energy and mineral resources (EMR) ministry yesterday. During last month, the ICP fell to US$37.43 a barrel from August of $41.63 per barrel.
The virus outbreak have a domino effect on the demand and price of crude oil in the international market, according to the ministry. Apart from the spread of COVID-19, OPEC+ steps in cracking down on countries that fail to comply the production cuts, and the extraordinary meeting planned in this month has become a negative sentiment for the oil market.
Another reason is the availability of crude oil, gasoline, and distillates in the United States (US) in mid-September. Based on a report by the US Energy Information Administration, crude oil stocks fell by 1.6 million barrels, gasoline fell by 4 million barrels, and distillates fell by 3.4 million barrels. The ministry stated, “Oil prices are also affected by the weakening of US Dollar against other major currencies.”
At the end of last week, world oil prices had experienced a strengthening due to the economic stimulus package introduced by the Donald Trump’ administration, but was not able to boost oil prices beyond the previous month. The data showed, Brent dropped from $44.82 to $40.81 a barrel and West Texas Index down from $42.39 to $39.63 per barrel.
While, trade ministry office reported, the reference price for crude palm oil (CPO) products for export duty jumped 4.19 percent from $738.07 per MT of CPO to $768.98 a metric ton (MT) of CPO in October. Director general at the ministry, Didi Sumedi stated, because the price has exceeded the threshold of $750 a MT of CPO, the government applies export levy for the CPO $3 a MT of CPO for the October period.
The reference price for cocoa beans also rose 7.73 percent to $2,576.84 per MT from prior month at $2,392 a MT. The resulted an increase in the benchmark prices of the cocoa in October 2020 from $2,107 per MT to $2,288 a MT, or up 8.59 percent from the previous month.
He stated, that the increase price of cocoa beans was due to stronger international prices but does not affect the export duty, which remains at 5 percent. While, benchmark prices and export duty for wood products and leather products there was no change from theprevious month.
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