Indonesia’s Average Crude Oil Price for February Slips to US$74.29 per Barrel

JAKARTA, investortrust.id – The Indonesian authorities decide the new monthly benchmark for crude oil prices in February 2025, reflecting global market pressures and broad economic uncertainty. This downward trend signals potential implications for the country’s revenue and trade balances, especially amid continuing concerns over tariffs and geopolitical developments.

Minister of Energy and Mineral Resources Bahlil Lahadalia states on Thursday, Mar 13, 2025, that the average Indonesian Crude Price reaches US$74.29 per barrel for February 2025. This figure is US$2.52 lower than the US$76.81 per barrel recorded in January 2025, according to a ministry decree issued on Tuesday, Mar 11, 2025.

Acting Head of the Bureau of Communication, Public Information Services, and Cooperation at the Ministry of Energy and Mineral Resources Chrisnawan Anditya explains that the decrease in Indonesia’s crude price is consistent with a broader decline in global oil benchmarks. One major factor is market concern over a potential dip in global oil demand following tariff decisions by the United States (US) targeting Canada and Mexico.

He adds that easing geopolitical risk, specifically the possibility of an end to the Russia-Ukraine conflict and indications of reduced sanctions against Russia, has sparked worries of oversupply in the global market.

“One of the causes of declining crude oil prices in international markets is concern over a potential drop in global oil demand, driven by the planned imposition of US tariffs on Canada and Mexico, alongside the possibility of tariffs on European Union imports reaching up to 25%,” says Chrisnawan in Jakarta, Thursday, Mar 13, 2025.

Chrisnawan also notes that once the US enacted tariffs, China introduced counter-tariffs on Feb 10, 2025, imposing a 10% charge on US crude oil, vehicles, and agricultural machinery, as well as a 15% charge on coal and LNG.

Meanwhile, the International Energy Agency in its February report recorded that non-OPEC countries increased production by around 200,000 barrels per day, rising to 14.31 million barrels per day.

In the Asia Pacific region, the price drop is further influenced by market anxiety over China’s economic conditions, particularly after the Caixin Purchasing Manager Index was announced at 51—lower than market expectations. Additionally, there was an unplanned shutdown at the Crude Distillation Unit of Kawasaki Refinery in Japan, which has a capacity of 172,100 barrels per day and was scheduled to resume operations in mid-February 2025.

Below is the movement of major global crude oil prices for February 2025 compared to January 2025:
• Dated Brent fell by US$4.08 per barrel, from US$79.23 to US$75.16 per barrel.
• West Texas Intermediate (WTI) on the New York Mercantile Exchange declined by US$3.89 per barrel, from US$75.10 to US$71.21 per barrel.
• Brent on the Intercontinental Exchange (ICE) decreased by US$3.39 per barrel, from US$78.35 to US$74.95 per barrel.
• The OPEC Reference Basket slipped by US$2.56 per barrel, from US$79.45 to US$76.89 per barrel.
• The average Indonesian Crude Price dropped US$2.52 per barrel, from US$76.81 to US$74.29 per barrel.