The Ministry of Energy and Mineral Resources (ESDM) has announced the Indonesian Crude Price (ICP) for March 2025 at USD 71.11 per barrel. This figure reflects a decrease of 4.28%, or USD 3.18, from the February 2025 ICP, which was recorded at USD 74.29 per barrel.  

According to Acting Head of the Bureau of Communications, Public Information Services, and Cooperation (KLIK), Chrisnawan Anditya, the decline in March’s ICP is in line with falling global crude oil prices. One of the main contributing factors is concern over the United States' rising trade tariffs, which could disrupt the global economy and reduce crude oil demand. 

This pricing decision is formalized in the Minister of Energy and Mineral Resources Decree Number 143.K/MG.01/MEM/2025 on the Price of Crude Oil for March 2025, dated April 16, 2025. 

Other factors affecting the global decline in crude oil prices include signals from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to continue their plan to increase oil production in April 2025. This move comes in response to pressure from the U.S. President on OPEC and Saudi Arabia to bring prices down. 

In addition, U.S. commercial crude oil inventories rose by 3.2 million barrels in mid-March 2025 compared to the end of February 2025, reaching a total of 437 million barrels. This increase aligns with the seasonal trend of reduced demand from oil refineries. 

Refinery operation rates in both the U.S. and Europe also declined, entering a routine maintenance period in preparation for the summer driving season, when fuel consumption typically rises. 

In the Asia-Pacific region, crude oil prices were further pressured by developments in China. Chinese teapot refineries, major buyers of sanctioned crude oil, have begun suspending their purchases to assess the risks associated with potential U.S. sanctions against one of China’s independent refiners for buying Iranian oil. Traders across Asia are now holding back on Iranian crude purchases and monitoring progress in the Russia-Ukraine peace talks, which may lead to a relaxation of sanctions on Russian oil. 

The average prices of major crude oil benchmarks in March 2025 compared to February 2025 all recorded declines. Dated Brent fell by USD 2.55 per barrel, from USD 75.16 to USD 72.60. WTI (Nymex) dropped by USD 3.27 per barrel, from USD 71.21 to USD 67.94. Brent (ICE) declined by USD 3.49 per barrel, from USD 74.95 to USD 71.47. The OPEC Basket decreased by USD 2.81 per barrel, from USD 76.81 to USD 74.00. Meanwhile, Indonesia’s ICP dropped by USD 3.18 per barrel, from USD 74.29 to USD 71.11. 

This article is published in partnership with Katadata 

Original article here