The Ministry of Energy and Mineral Resources (ESDM) has set the average Indonesian Crude Price (ICP) at USD 68.79 per barrel in February, representing an increase of 6.8% from USD 64.41 per barrel in January. 

The decision was stipulated in Ministerial Decree of Energy and Mineral Resources No. 115.K/MG.03/MEM.M/2026 on the February 2026 Crude Oil Price. 

Director General of Oil and Gas Laode Sulaiman said the increase in the ICP was influenced by several factors developing in the global oil market, including the ongoing conflict in the Middle East. 

“The geopolitical tensions have triggered various policy responses. Military activities in strategic areas, including exercises in Middle Eastern waters, have the potential to affect global energy distribution routes,” Laode said in a press release on Thursday, March 12. 

In February, several benchmark crude oil prices recorded increases compared with January. The average Indonesian Crude Price (ICP) rose by USD 4.38 per barrel, from USD 64.41 per barrel to USD 68.79 per barrel. Meanwhile, Brent (ICE) increased by USD 4.64 per barrel, from USD 64.73 per barrel to USD 69.37 per barrel, while WTI (Nymex) climbed by USD 4.26 per barrel, from USD 60.26 per barrel to USD 64.52 per barrel. Dated Brent rose by USD 4.35 per barrel, from USD 66.80 per barrel to USD 71.15 per barrel, and the OPEC Basket increased by USD 5.48 per barrel, from USD 62.31 per barrel as of January 30, 2026, to USD 67.79 per barrel as of February 26, 2026. 

Attacks on several energy facilities in Russia also contributed to rising market concerns over potential disruptions to global oil supply. 

Beyond geopolitical developments, oil price movements were also influenced by global supply conditions. A report by the International Energy Agency (IEA) indicated a decline in global oil production in early 2026, including among members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+). 

“That situation has contributed to tightening the balance of oil supply in the global market,” Laode said. 

Laode added that another factor driving higher crude oil prices was declining petroleum product inventories in the United States, reflecting increased energy consumption and strong economic activity. 

In the Asia-Pacific region, oil price movements were also affected by increased refining activity in Singapore. Singapore’s crude oil throughput rose by 1% month-on-month at the end of February 2026, reaching 89% of its total capacity of 1.12 million barrels per day. 

China also increased its strategic oil reserves by 1 million barrels, further tightening crude oil market fundamentals on both the supply and demand sides. 

This article is published in partnership with Katadata  

Original article here