Indonesian Crude Prices Drop to US$83.72 per Barrel

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    TEMPO.CO, Jakarta - The average price of Indonesia Crude Oil Price (ICP) in October 2014 was recorded at US$83.72 per barrel, US$ 11.25 lower compared previous month's US$ 94,97 per barrel.

    The Sumatera Light Crude Oil (SLC) for instance, was sold at US$84.46 per barrel, US$1.2 lower than the price in September 2014.

    Indonesian Oil Price Committee from the Directorate General of Oil and Gas said that the decrease of ICP is in line with the world's crude oil price in the international market. "A number of reports said that there is a forecast of decreasing demands for crudes," said the Directorate, Wednesday, November 5, 2014.

    Based on the report by the International Energy Agency (IEA) on October 2014, the projected demands for crude oil dropped to 92.4 million barrels per day, which is 0.21 million barrels per day lower than last month's demand of 92.61 million barrels per day.

    Despite the decrease in demands, oil supplies have increased. In September 2014, the world’s crude oil supply increased by 910,000 barrels per day due to increased production from OPEC and non-OPEC member countries.

    Deputy Director General of Oil and Gas Naryanto Wagimin, explained that the decrease of ICP affects the country's income the most. Moreover because the lifting of oil and gas may not reach its target. "If the lifting of oil and gas drops, prices drop and the country’s income will also drop. Its basic mathematics," he said.

    Naryanto however, has not reviewed exactly how much the drop in ICP will affect the country’s national income. The government still cannot forecast how long the price drop will continue.