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Indonesian crude oil prices surge amidst Ukraine, Russia conflict

Tempo - February 25, 2022

Antara, Jakarta – The Energy and Mineral Resources Ministry (ESDM) on Thursday said Russia's special military operation against Ukraine can significantly affect the world's commodities, one of which is Indonesia's crude oil.

According to the Ministry's records, the Indonesian crude price (ICP) that was at US$20 per barrel since March of 2020 has now increased fourfold to US$85.9 per barrel in January this year.

"The 2022 State Budget assumes the ICP to be at US$63 per barrel. It will grow higher because of the Russia – Ukraine conflict," said ESDM spokesperson Agung Pribadi on Thursday, February 24, Antaranews reported.

Agung revealed that the soaring oil prices already happened on Thursday with the Brent oil prices surging to US$100 per barrel.

The Ministry continues to monitor the movement of world oil prices caused by geopolitical tensions between Russia and Ukraine, considering that some of Indonesia's crude oil and fuel oil are still imported.

"We continue to monitor this and it needs to be a concern for all parties," said Agung.

During the last 6 months, the price of Indonesian oil has shown an upward trend, starting in August 2021 at US$67.8 per barrel. It continues to increase every month until January 2022 which touched US$85.9 per barrel.

Source: https://en.tempo.co/read/1564560/indonesian-crude-oil-prices-surge-amidst-ukraine-russia-conflic