Friday, 19 Apr 2019

The oil world's price is down, but Indonesia still has not lowered the fuel's price in the country


IllustrationIllustration - Brent crude and crude oil, still have the weakest month in more than 10 years at the end of last November to early December. And this lost more than 20 percent because global supply has exceeded demand.

Since the start of trade, world oil prices have remained low, this has been pressured by fears of oversupply and a strong US dollar, but losses were limited by hopes that the Organization of Petroleum Exporting Countries (OPEC) and Russia would approve some form of production cuts next week.

Brent crude for January delivery fell 0.80 dollars, or 1.3 percent, to close at 58.71 dollars a barrel on the London ICE Futures Exchange, ahead of the expiration of contract on January.

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And the most active Brent crude for February delivery lost 0.45 dollars and settles at 59.46 dollars per barrel.

Meanwhile, US crude, West Texas Intermediate (WTI) for January delivery, fell 0.52 dollars, or 1.00 percent, to settle at 50.93 dollars per barrel on the New York Mercantile Exchange.

Oil prices were also under pressure as the US dollar strengthened against a number of currencies, as investors hoped that the United States and China would reach an agreement on trade talks.

A stronger US dollar makes oil priced in the greenback more expensive for holders of other currencies.

Prices cut losses from session lows, after Bloomberg reported the OPEC advisory committee said there was a decline in production of 1.3 million barrels per day from last month's level, traders said.

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In a Reuters report from, the analysis said, on Monday, December 3rd 2018, the price of Brent crude oil was closed at the level of USD58.71 per barrel on Friday, November 30th 2018 ago. On a daily basis, Brent weakened 1.3 percent or USD 0.8 per barrel.

The weakening at the end of the month was also experienced by the price of West Texas Intermediate (WTI) US crude oil at 1 percent or USD 0.52 per barrel to USD 50.93 per barrel.

At the beginning of the month the prices of Brent and WTI were still at the level of USD72.89 and USD63.69 per barrel.

"The pressures have certainly increased so prices continue to fall amid ongoing concerns over excessive supply and lower demand growth ... If no action is taken, oil prices can certainly go down further, while production cuts must cause a big enough rebound for very bad oversold levels" said an analysis in Reuters, December 3rd 2018.

Rising oil production in the United States, Russia and by Middle Eastern-dominated OPEC members have helped fill global inventories and create excess supply in some markets.

Meanwhile, the slowdown in oil demand growth has added to the amount of excess supply.

Regarding the world oil price and Brent oil which are still at the lowest level, Indonesia seems to be cool. Domestic oil prices are still suspect in the past. And somehow the government's decision to reduce fuel prices will be renovated again.


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