Energy Ministry projects July ICP at US$67-71 per barrel

Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources (ESDM) projects that the average Indonesian Crude Price (ICP) for July 2026 will be in the range of 67–71 US dollars per barrel.

“The realised price will depend on market developments and the global geopolitical situation,” said the ministry’s Director General of Oil and Gas, Laode Sulaeman, when contacted by ANTARA in Jakarta on Monday.

He noted that the risks that still need to be monitored include the possibility of new escalations of attacks that could disrupt oil production.

On the other hand, increased supply from the Middle East following the reopening of the Strait of Hormuz could put renewed downward pressure on prices.

“We are ensuring that the ICP formula remains transparent and reflects international market dynamics so that it stays accountable for state finances and upstream oil and gas business activities,” said Laode.

The government will base its monitoring of the ICP in the coming period on developments in supply, demand, and geopolitical conditions. Changes in these three factors will determine the direction of Indonesia’s crude oil price throughout July 2026.

The Ministry of ESDM set the average Indonesian Crude Price (ICP) for June 2026 at 83.45 US dollars per barrel.

The June ICP determination is stipulated in Minister of Energy and Mineral Resources Decree Number 282.K/MG.03/MEM.M/2026 on the Indonesian Crude Oil Price for June 2026.

Laode said geopolitical developments in the Middle East were the main factor weighing on the ICP during June 2026.

“This decline was generally influenced by tensions in the conflict between the United States, Israel, and Iran, which tended to ease throughout June,” said Laode.