Indonesia's July oil price falls to $81.68 a barrel as supply recovers

By Romel S. Gurky

Indonesia's average crude oil price fell to $81.68 a barrel in July from $83.45 in June, the energy ministry said on Monday, as easing geopolitical tensions in the Middle East and a gradual recovery in global oil supplies weighed on prices.

The July Indonesian Crude Price (ICP) was set under Energy and Mineral Resources Ministry Decree No. 319.K/MG.03/MEM.M/2026, Director General of Oil and Gas Laode Sulaeman said.

"The determination of the July 2026 ICP at $81.68 per barrel reflects developments in the global crude oil market, which adjusted following easing geopolitical tensions in the Middle East and the gradual recovery of global oil supply flows," Laode said.

Major international crude benchmarks also declined in July. ICE Brent averaged $83.97 a barrel, down 46 cents from June, while Nymex WTI fell $2.57 to $79.22.

Dated Brent fell $2.06 to $83.41 a barrel, while the OPEC Basket declined $7 to $82.74 as of July 30, the ministry said.

Laode said the de-escalation of the conflict between the United States and Iran, followed by a ceasefire and renewed prospects for diplomatic talks, helped ease concerns over supply disruptions.

Improved shipping traffic through the Strait of Hormuz also boosted market confidence, the ministry said, citing International Energy Agency data showing global oil supply increased by 4.1 million barrels per day in June to 98.8 million bpd as traffic through the key waterway temporarily recovered.

Oil prices remain vulnerable to geopolitical developments, supply conditions and changes in global demand, Laode said, adding that limited military escalation and shifts in U.S. crude inventories could affect prices in coming months.

The government will continue to monitor international oil market developments and apply its ICP formula to reflect global market conditions, while supporting fiscal accountability and upstream oil and gas activities, the ministry said.

Editing by Reiner Simanjuntak