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

The Ministry of Energy and Mineral Resources (ESDM) projects the average Indonesian Crude Price (ICP) for July 2026 will be in the range of US$67 to US$71 per barrel. “The realised price will depend on market developments and the global geopolitical situation,” said Director General of Oil and Gas at the Ministry of ESDM, Laode Sulaeman, in a statement confirmed from Jakarta on Monday. He noted that risks requiring attention include the possibility of escalating new attacks that could disrupt oil production. Conversely, an increase in supply from the Middle East following the opening of the Strait of Hormuz could potentially depress prices further. “We ensure the ICP formula remains transparent and reflects international market dynamics to maintain accountability for state finances and upstream oil and gas business activities,” Laode stated. The government will base its monitoring of the ICP for the next 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 Energy and Mineral Resources set the average ICP for June 2026 at US$83.45 per barrel, as stipulated in Ministerial Decree Number 282.K/MG.03/MEM.M/2026. Laode explained that geopolitical developments in the Middle East were the main factor depressing the ICP during June. “This decline was generally influenced by the easing of tensions in the conflict between the United States, Israel, and Iran throughout June,” he said.