COVID-19 Vaccine Production Progress Hoisting ICP in July 2020

The world crude oil price is still in an upward trend. The positive sentiment of the global market regarding the progress of the COVID-19 vaccine production has hoisted world oil prices in July 2020. Based on the calculation of the Indonesian Crude Price (ICP) formula, the average ICP in July 2020 reached US$ 40.64 per barrel, increasing US$ 3.96 per barrel from US$ 36.68 per barrel in June 2020.

According to the Indonesian Oil Price Team, other factors that support the rise in oil prices are the recovery of economic activity in several countries due to the relaxation of the lockdown, the provision of economic stimulus in Europe, and a well-maintained supply of oil. "International Energy Agency (IEA), in its July 2020 report, said global oil supply in June 2020 fell by 2.4 million bopd to 86.9 million bopd, which was the lowest level in the last nine years. This decline was partly due to the OPEC+ compliance level, which reached 108 percent and production cuts from the US and Canada," Tim said in a written statement on Thursday (8/6).