The average price of Indonesian Crude Price (ICP) has increased to US$63.26 a barrel from $59.82 per barrel in the previous month, said the energy and mineral resources ministry - Photo: Special

JAKARTA (TheInsiderStories) – The average price of Indonesian Crude Price (ICP) has increased to US$63.26 a barrel from $59.82 per barrel in the previous month, said the energy and mineral resources ministry today (12/06). The influencing factors was the optimism a “phase one” pack of United States – China trade deal could realize in this month.

“In November, the world oil market rose due to several things such as the achievement of the US-China agreement, besides that the European Union also delayed Brexit until January 2020, this became a positive signal for the world oil market,” said the ministry.

In addition, the trigger of the increase in oil prices was also due to market expectations that OPEC+ countries would extend the period of production cuts or even increase the amount of production cuts at the meeting on Dec. 5.

The ministry noted, the average price of major crude oil in the international market also rise in November compared to October. Brent oil, for an increased by $3.30 a barrel, from $59.72 to $63.02 per barrel.

For other types of crude oil, West Texas Index at Nymex rose to $57.07 from $54.01 a barrel, OPEC basket edged up from $59.88 to $62.90 per barrel, and Brent (ICE) to $62.71 per barrel from $59.63 a barrel.

Another factor of the rise in world oil prices is also based on the publication of the International Energy Agency for the November period that the projected global crude oil demand rose in the fourth quarter of 2019, up by 300,000 barrels per day compared to the third quarter of 2019 resulting from improved growth in the country’ crude oil demand OECD countries.

In addition, the decline in Iranian production was 2.15 million barrels per day, the lowest production since 1988, due to the imposition of sanctions by the US.

For the Asia Pacific region, the increase in crude oil prices was also influenced by refineries processing rates that continued to strengthen with the operation of a number of new refineries in China, the end of the period of petrochemical refinery maintenance in South Korea and increased oil throughput of several refineries in other Asian countries, such as Taiwan and Japan.

Written by Staff Editor, Email: theinsiderstories@gmail.com