Jakarta (Indonesia Window) – The Indonesian Crude Price (IPC) is influenced by the agreements of OPEC+ (Organization of the Petroleum Exporting Countries) member countries on cutting the oil production by up to 95 percent, according to a statement from the Ministry of Energy and Resources. Mineral Resources received by Indonesia Window here on Saturday.
The IPC is also affected by oil production cuts from several OPEC+ countries in August and September 2020 as a compensation for excess production in May-July 2020, the ministry’s spokesperson, Agung Pribadi, said.
The OPEC’s report for August 2020 shows a positive economic trend as the services sector recovered, indicated by income growth, which was higher than expected, and hence supported the stock market.
In addition, another factor affecting the IPC is reduction in the number of rigs operating in the United States to 176 units in early August 2020.
Data show that in March 2020, there were 683 operating rigs, then decreased to 185 rigs in July.
On the other hand, margins of refineries, which started to recover globally in July 2020 as the transportation sectors became normal following the easing of lockdowns in several countries, also affected the IPC.
The improvement in manufacturing activity in the U.S., and the decline in demand for gasoline in a week, from 9.16 million barrels per day to 8.78 million barrels per day, also affected the ICP.
The Energy Information Administration (EIA) detailed a report on the decline in the U.S. crude stockpiles by 10.8 million barrels to 507.8 million barrels.
Meanwhile, the U.S. gasoline stocks fell by 8.6 million barrels to 239.2 million barrels.
Reporting by Indonesia Window