Jakarta (Indonesia Window) - The average price of Indonesian crude oil or Indonesian Crude Price (ICP) in March 2021 increased by 5.2 percent or 3.14 U.S. dollars, to 63.50 U.S. dollars per barrel, compared to the price in February amounting to 60.36 U.S. dollars per barrel.

This increase is the impact of market optimism over economic activities around the world, and the improving demand for crude oil supported by effective crude oil supply arrangements, according to the Head of the Communications Bureau, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources, Agung Pribadi, in a written statement in Jakarta on Wednesday (Apr. 7).

According to him, the price of Indonesia's main crude oil of Sumatran Light Crude (SLC) in March 2021 also rose to 64.06 U.S. dollars per barrel, from the previous price in February of 61.42 U.S. dollars per barrel.

Separately, the Indonesian Oil Price Team stated that the increase in oil prices on the international market was also influenced by the OPEC + agreement to continue cutting production until April 2021, as well as the OPEC + compliance rate in February 2021 which reached 113 percent.

Another factor is the United States' 1.9 trillion U.S. dollars stimulus package, which is projected to boost the country's economy, and the global economy in general, said the Indonesian Oil Price Team.

A publication from the International Energy Agency (IEA) in March 2021 stated that global crude oil demand in 2021 is projected to grow by 5.5 million barrels per day.

According to the IEA, global crude oil supplies in February 2021 fell by 2 million barrels per day due to extreme cold weather in the U.S. and an additional production cut of 1 million barrels per day by Saudi Arabia.

OPEC in March 2021 also released a statement that the projection of the global crude oil demand in 2021 increased by 0.22 million barrels per day, from 96.05 million barrels per day to 96.27 million barrels per day, compared to the projection in the previous month.

For the Asia Pacific region, the increase in oil prices was also influenced by the throughput of refineries in China which reached a record high of 14.3 million barrels per day.

The following shows the average development of world oil prices on the international market.

Dated Brent increased by 3.41 U.S. dollars per barrel, from 62.22 U.S. dollars per barrel to 65.63 US dollars per barrel.

WTI (Nymex) increased by 3.30 U.S. dollars per barrel, from 59.06 U.S. dollars per barrel to 62.36 US dollars per barrel.

Basket OPEC increased by 3.59 U.S. dollars per barrel, from 61.04 U.S. dollars per barrel to 64.63 US dollars per barrel.

Brent (ICE) increased by 3.42 U.S. dollars per barrel, from 62.28 U.S. dollars per barrel to 65.70 US dollars per barrel.

Reporting by Indonesia Window