Middle East Conflict Eases, Indonesian Crude Price Drops to US$106.56 per Barrel in May 2026
The average price of Indonesian Crude Price (ICP) in May 2026 experienced a significant decrease. The government set the May ICP at the level of 106.56 US dollars per barrel, a drop compared to April 2026, which reached 117.31 US dollars per barrel.
This decrease of 10.75 US dollars per barrel occurred alongside the weakening of global benchmark crude oil prices, influenced by improving global geopolitical conditions and declining market concerns regarding international energy supply disruptions.
The Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM), Laode Sulaeman, stated that the decline in ICP in May 2<0xA0>2026 was in line with the movement of major global crude oil prices, which faced pressure throughout the month.
“The average ICP for May 2026 is set at 106.56 US dollars per barrel, in line with the decline in major global crude oil prices,” Laode said in an official statement.
As geopolitical conflicts ease, supply concerns have diminished. According to Laode, one of the primary factors affecting the decline in global oil prices is the easing of geopolitical tensions previously involving the United States, Israel, and Iran. The global energy market responded to several developments indicating a de-escalation of conflict in the Middle East region. This situation is considered capable of reducing concerns regarding the potential disruption of the world’s oil supply.
Throughout May 2026, US President Donald Trump repeatedly sent positive signals regarding the possibility of the conflict ending and progress in the negotiation process with Iran. Additionally, the United States cancelled plans for further attacks against Iran. At the same time, the US government reinstated temporary exemptions to Russian oil sanctions for shipments already at sea. These steps are considered to have provided positive sentiment to the market by increasing confidence that the global oil supply remains secure.
“These developments have lowered market concerns regarding the potential disruption of the world’s oil supply and pressured crude oil prices in the international market,” said Laode.
In addition to geopolitical factors, oil prices are also being pressured by global demand prospects, which show a weakening trend. Based on projections from the International Energy Agency (IEA), global oil demand is expected to decrease by up to 420,000 barrels per day, bringing it to a range of 104 million barrels per day.