TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry announced that Indonesian Crude Price (ICP) rose in March. At the ministry`s official website, March`s ICP was recorded at US$61.87 a barrel, inching up from February's US$61.61 per barrel.
According to the government, the ICP rose due to increasing demand from international markets.
The International Energy Agency's (IEA) data showed that the global demand for crude is projected to increase by 1.5 million barrels per day (bpd). The total demand for this year is estimated to reach 99.3 million bpd.
Read: Indonesia`s Proven Oil Reserves Recorded at 33 Billion Barrels
IEA's prediction is corroborated by OPEC's expose that revealed that there is an additional crude demand of 1.6 million bpd this year. Among the causes for the demand surge is the rampant infrastructure development in South Korea and India.
Another factor that contributed to the ICP hike is the increasing prices of crude in global markets in March.
Brent's price for February shipment was recorded at US$65.9 in March, up from February's US$ 65.19.
Geopolitical tensions in the Middle East are also affecting crude price movements.
The Energy Ministry's website wrote that based on Reuters report on March 26, Yemen's launch of the Houthi ballistic to Saudi Arabia heated up tension in the Middle East.
Lani Diana Wijaya
