Factors influencing the decline in world oil prices, among others, increased global crude oil supply in June compared to the previous month's production.

Jakarta (Indonesia Window) – The average Indonesian Crude Price (ICP) in July 2022 decreased by 10.89 U.S. dollars per barrel from 117.62 dollars per barrel to 106.73 dollars per barrel, according to the dictum Fourth, the Decree of the Minister of Energy and Mineral Resources concerning the Price of Indonesian Crude Oil in July 2022 which is set on August 1, 2022.

Factors influencing the decline in world oil prices, among others, increased global crude oil supply in June compared to the previous month's production.

The Executive Summary of the Indonesian Crude Oil Price Team stated that the average price of main crude oil in July 2022 compared to June 2022 experienced a decline, among others related to world crude oil supply.

The Organization of the Petroleum Exporting Countries (OPEC) in a July 2022 report said that global crude oil production in June increased by an average of 1.32 million barrels of oil per day (bopd) to 99.82 million bopd compared to the previous month's production.

The OPEC's decision to maintain policy for production increased in July and August of 648,000 bopd each.

In addition, the OPEC report in July 2022 stated that the projected world oil demand in the second quarter of 2022 decreased by 0.2 million bopd compared to the data stated in the previous publication.

Meanwhile, the International Energy Agency (IEA) in its July 2022 report stated that world oil supply jumped 690 thousand bopd to 99.5 million bopd in June compared to the previous month's production.

Meanwhile in the Asia Pacific region, the decline in crude oil prices was also influenced by the Chinese Government's policy to tighten social restrictions in several regions in an effort to prevent the spread of the Corona virus infection, thus affecting market concerns and reducing demand for crude oil.

"In addition, South Korea, which experienced inflation in June at its highest level in nearly 24 years, raised concerns among market participants about the slowdown in economic growth and demand for oil," said the Executive Summary of the Indonesian Crude Oil Price Team.

The development of the average price of main crude oil in July 2022 compared to June 2022 is as follows.

Dated Brent fell by 11.00 U.S. dollars per barrel, from 123.70 U.S. dollars per barrel to 112.70 U.S. dollars per barrel.

WTI (Nymex) fell by 14.96 U.S. dollars per barrel, from 114.34 U.S. dollars per barrel to 99.38 US dollars per barrel.

Brent (ICE) fell by 12.38 U.S. dollars per barrel, from 117.50 U.S. dollars per barrel to 105.12 U.S. dollars per barrel.

The OPEC basket fell by 9.34 U.S. dollars per barrel, from 117.83 U.S. dollars per barrel to 108.49 U.S. dollars per barrel (as of 29 July 2022).

Reporting by Indonesia Window