Indonesia's June crude price tumbles 22% as Middle East tensions ease
Saturday, July 18 2026 - 08:18 AM WIB
By Romel S. Gurky
Indonesia's average crude oil price (ICP) fell 21.7% in June from the previous month as easing geopolitical tensions in the Middle East and improving global oil supply pushed international oil prices lower, the Energy Ministry said.
The ministry set the June Indonesian Crude Price (ICP) at $83.45 per barrel, down from $106.56 per barrel in May, according to an energy ministerial decree.
"The ICP declined significantly by $22.50 per barrel from the previous month's level of $106.56 per barrel. Overall, the decrease was driven by easing tensions in the conflict involving the United States, Israel and Iran throughout June," Director General of Oil and Gas Laode Sulaeman said in a statement.
The decline followed a ceasefire in the Middle East conflict and the gradual reopening of the Strait of Hormuz, which improved global crude supply flows and eased concerns over potential disruptions to oil shipments, the ministry said.
Market fundamentals also contributed to the fall in prices. The International Energy Agency (IEA) expects global oil demand to grow by 1.1 million barrels per day (bpd), while OPEC+ has resumed increasing production quotas. Russia is also planning to raise oil output to meet its 2026 OPEC+ production target, adding to global supplies.
Indonesia's ICP fell by $23.11 per barrel in June, while Brent crude averaged $84.98 per barrel, down $18.73 from May. U.S. West Texas Intermediate averaged $82.41 per barrel, down $16.11, and Dated Brent declined by $21.42 to $86.13 per barrel.
The OPEC Basket price fell by $23.52 to an average of $91.03 per barrel, based on data through June 28.
The government expects the ICP to average between $67 and $71 per barrel in July, although the final price will depend on market developments and geopolitical conditions.
It said renewed military tensions that disrupt oil production remain an upside risk to prices, while higher crude exports from the Middle East following the reopening of the Strait of Hormuz could exert further downward pressure.
Indonesia's ICP, which serves as the official reference price for the country's crude oil, climbed to $117.31 per barrel in April as escalating tensions in the Middle East fueled concerns over supply disruptions before retreating in May and June as geopolitical risks eased.
Editing by Reiner Simanjuntak