Extension of OPEC Production Restrictions, Scored Highest ICP Price Along 2017 Friday, January 5, 2018

  • 2018.01.05 Friday
  • 18:06


JAKARTA - Recently the Organization of the Petroleum Exporting Countries (OPEC) issued a policy to extend the time limitation of crude oil production until the end of 2018. This policy also influences the increase of  world oil price , which also affects the rise of Indonesian Cruide Price (ICP).

The Indonesian Oil Price Team of the Ministry of Energy and Mineral Resources (ESDM) released, the average ICP rose to US $ 60.90 per barrel in December 2017, up by US $ 1.56 per barrel from US $ 59.34 per barrel at previous month. This figure sets Indonesia's record high crude oil prices throughout 2017.


The increase of ICP is inseparable from the increase of world oil price which is influenced by several factors. As noted in the OPEC publication that crude oil production from OPEC countries in November 2017 decreased by 0.13 million barrels per day. So the production becomes 32.45 million barrels per day. Total oil production in November was down from October 2017 which amounted to 32.58 million barrels per day.


It is also known that the largest oil pipeline in the United Kingdom, North Sea Forties, which drains about 450,000 BOPD (Barrels Oil Per Day) of oil shut down. This disruption also affects the increasing world oil prices at the end of 2017.


There were also international events that contributed to the rise in world oil prices such as the explosion at the New York Port Authority bus station, the strike of oil workers' in Nigeria, the increasing use of gasoline in the United States at Christmas Holiday, as well as the increasing geopolitical risks in the Middle East due the US president's statement on Jerusalem, and rising demand for crude in China.


Here is the price of world crude oil as of December 2017

oDated Brent: US $ 64.19 per barrel.

oBrent: US $ 64.09 per barrel.

oWTI (Nymex): US $ 57.95 per barrel. (KA)