Indonesian Crude Price Drops to US$106.56
The average price of Indonesian Crude Price (ICP) for May 2026 has been set at US$106.56 per barrel. This figure represents a significant decrease compared to the April 2026 position, which stood at US$117.31 per barrel.
The Director General of Oil and Gas, Laode Sulaeman, stated that this US$10.75 per barrel drop in ICP aligns with the downward trend in major global crude oil prices, particularly Dated Brent. According to him, this condition was triggered by the easing of geopolitical tensions in the Middle East region.
“The average ICP for May 2026 is set at US$106.56 per barrel. This positive development is generally influenced by improvements in global supply as global geopolitical conflicts subside,” Laode said in an official statement in Jakarta on Saturday.
Laode explained that the global oil market is responding to signals of conflict de-escalation between the United States, Israel, and Iran. US President Donald Trump’s policies, which provided positive signals regarding the possibility of ending the conflict and progress in negotiations with Iran, were key factors. Additionally, the cancellation of plans for further attacks on Iran and the temporary exemption of sanctions on Russian oil have also pressured international market prices.
Beyond geopolitical factors, the price decline is also driven by weakening global demand prospects. The International Energy Agency (IEA) estimates that global oil demand will fall by 420,000 barrels per day to approximately 104 million barrels per day, with the deepest decline occurring in the second quarter of 2026.
In the Asian region, a decrease in crude oil imports was recorded in China, Japan, South Korea, and India. Crude oil refining activity in China even reached its lowest level in 44 months, falling 5.8% year-on-year to 13.35 million barrels per day.
The government has affirmed that it will continue to monitor global energy market dynamics to maintain the stability of national energy supply and prices. “We are committed to maintaining national energy security and ensuring the availability of supply for the public through anticipatory measures,” concluded Laode.