April 17, 2025 | 11:32 pm
TEMPO.CO, Jakarta - The price of Indonesia's crude oil (ICP) for March 2025 was set at US$ 71.11 per barrel. This represents a decrease of US$3.18 compared to the February 2025 price of US$74.29 per barrel.
The price determination is outlined in the Minister of Energy and Mineral Resources Decree No. 143.K/MG.01/MEM/2025, issued on April 16, 2025.
Chrisnawan Anditya, Acting Head of the Ministry of Energy and Mineral Resources' Bureau of Communication, attributed the March ICP decline to the downward trend in global oil prices, primarily driven by anxieties surrounding potential U.S. trade tariff increases, often referred to as Trump Tariffs.
These tariffs, he noted, could negatively impact global economic growth and, consequently, the demand for crude oil.
"The primary factor contributing to the decrease in crude oil prices in the international market is partly due to concerns about the potential increase in U.S. trade tariffs, which could have a negative impact on the global economy and the demand for crude oil," Chrisnawan explained in a written statement released on Thursday, April 17, 2025.
He also cited OPEC+'s continued plan to increase oil production in April 2025, amidst U.S. pressure to lower prices, as a contributing factor. Additionally, the increase in U.S. commercial crude oil stocks by 3.2 million barrels from 433.8 million barrels at the end of February to 437 million barrels by mid-March 2025. This increase is a seasonal trend during this time of year when demand from oil refineries tends to decrease.
"The decrease in refinery demand coincides with the entry of refineries in the U.S. and Europe into scheduled maintenance periods, in preparation for the summer driving season, which typically leads to increased consumption of oil fuel," Chrisnawan elaborated.
Moreover, he mentioned that the decline in oil prices within the Asia-Pacific region is also being shaped by the cautious approach adopted by independent refineries in China, often referred to as "teapot refineries." These refineries have reportedly begun to suspend purchases of sanctioned crude oil as they assess the potential risks associated with U.S. sanctions imposed on one independent Chinese refinery that had been buying oil from Iran.
"Oil traders in Asia are holding back from purchasing crude oil from Iran while awaiting the outcome of peaceful negotiations between Ukraine and Russia, which could potentially lead to a relaxation of sanctions on Russian crude oil," he stated.
The following are the average price movements of major crude oil benchmarks in March 2025 compared to February 2025:
- Dated Brent: US$ 72.60 (down US$ 2.55)
- WTI (Nymex): US$ 67.94 (down US$ 3.27)
- Brent (ICE): US$ 71.47 (down US$ 3.49)
- Brent (ICE): US$ 71.47 (down US$ 3.49)
- Indonesian Crude Price (ICP): US$ 71.11 (down US$ 3.18)
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