Price of Indonesian Crude Oil Below US$100 Per Barel In August

Jakarta (Antara Bali) - The prices of Indonesian crude oil (ICP)  averaged below US$100 per barrel in August, based on data at the energy and mineral resource (ESDM) ministry.

The Indonesian oil price team at the ESDM ministry said on Friday the ICP in August was recorded at US$99.51 per barrel  or down US$5.12  from US$104.63 per barrel in July.

The decline was attributable to  an increase in production while demand was falling.

The prices in the first 8 months of the year averaged US$105.56 per barrel.

The Indonesian state budget for 2014 was calculated based on assumption that the ICP averaged US$105 per barrel.

The ICP has tended to decline  despite  an increase in the first months of the year.

The price was recorded at US$105.8 per barrel in January , up to US$106.08 per barrel in February and to US$106.9  in March before declining to US$106.44  in  April and to US$106.2 in May.

In June the ICP rose again to US$108.95 before declining again to US$104.63 per barrel in July and again to US$99.51  in August.

The Price Team said the price of  Minas (Sumatra light crude) in August was  US$100 dollar per barrel or US$5.06 lower than US$105.06 in July,  2014.

Among the factors causing the price fall was refineries operated at full capacity  resulting in an increase in production.

The oil production of OPEC rose 167,000 barrels per day in July compared with the previous month.

US production of crude oil  in July reached 8.5 million barrels per day or a record high since April 1987.

Meanwhile the world's crude oil production  in July 2014, rose to  93.04  million barrels per day  or  230,000 barrel higher per day than in the previous month.

In addition world's oil demand was estimated to  fall by  20,000 barrels per day in July compared with the previous months.

"In the whole of 2014, oil demand is forecast to rise 1.1 million barrel per day  or 0.03  million barrels lower than previously estimated," the Price Team said .

The price of Brent (ICE) fell US$4.79 from US$108.19  per barrel  in July  2014  to US$103.40 per barrel in August  2014  and the OPEC "basket" price dropped US$4.82  from US$105.61 to US$100.79  per barrel.

The price of WTI (Nymex) shrank US$6.31  from US$102.39  to US$96.08 per barrel  and that of Tapis (Platts) fell US$5.13 from US$112.09  to US$106.96  per barrel. (WDY)