ICP August 2014 Reaches USD 99.51 per barrel

MT Valiant during a mooring in the waters off the Gulf coast of Aru, Pangkalansusu. (Photo THNews/fi)

JAKARTA, Price of Indonesian crude oil in August 2014 based on ICP Formula calculation reached US $ 99.51 per barrel, down US $ 5.12 per barrel of US $ 104.63 per barrel in July 2014.

While the price of Minas / SLC reach US $ 100.00 per barrel, down by US $ 5.06 per barrel from US $ 105.06 per barrel in July 2014.

Oil Indonesian team states, the decline in crude oil prices is in line with the development of a major crude oil prices in the international market caused by several factors, namely:

1 Based on reports of OPEC and the International Energy Agency (IEA) in August 2014, refineries processing crude oil in the Atlantic Basin and the resulting high inventory operates several types of products have increased. Similarly in Asia, refinery processing conditions have returned to normal operation and maintenance period resulted in a mild increase in distillate supplies. The level of profit (margin) refinery in the Americas and Asia weakened in July to early August.

2 According to the OPEC report in August 2014, OPEC crude oil production in July 2014 increased by 167,000 tons barrels per day compared to June 2014 and is based on the IEA report in August 2014, production of crude oil in the month of July 2014 in general has increased to 93.04 million barrels per day or higher by 230,000 barrels per day compared to the previous month.

3 According to the OPEC report in August 2014, the projected demand for crude oil in 2014 was slightly lower by 20,000 barrels per day compared with the previous month projection. Similarly, the projected demand growth in 2014 of 1.1 million barrels per day or less 0.03 million barrels per day compared to estimates in the previous month.

4 Based on the EIA report in August, the average crude oil production in July reached 8.5 million barrels per day which is the highest production rate since April 1987.

For the Asia Pacific region, the decline in oil prices occurred due to a decrease in demand for crude oil and its derivatives in almost all of Japan and South Korea as well as the condition of the refinery has been operating normally with the condition of low margins and light distillate stocks processed high.

Developing the main oil prices in the international market more:

- Brent (ICE) fell by US $ 4.79 per barrel from US $ 108.19 per barrel to US $ 103.40 per barrel.

- OPEC Basket fallen by US $ 4.82 per barrel from $ 105.61 per barrel to US $ 100.79 per barrel.

- WTI (NYMEX) fell by US $ 6.31 per barrel from $ 102.39 per barrel to US $ 96.08 per barrel.

- Tapis (Platts) fallen by US $ 5.13 per barrel from US $ 112.09 per barrel to US $ 106.96 per barrel.

Source: Directorate General of Oil and Gas