Oil Price Exceeds US$101 per Barrel
Thursday, 21 February, 2008 | 15:22 WIB

TEMPO Interactive, Jakarta: During trading yesterday (20/2), world crude oil prices once again reached a level of US$101.10 per barrel before going back to a position of US$99.26.

This price was the highest ever recorded in world oil trading history.

Oil analyst groups, as quoted by AFP, stated that the price increase was triggered by the news that members of the Organization of Petroleum Exporting Countries (OPEC) planned to cut production at the organization’s next meeting on March 5, 2008.

Near the close of trading at the New York Oil Exchange, the oil price for dispatch this March went down to a level of US$99.26 per barrel.

In London, Brent North Sea crude oil for dispatch this April closed at a position of US$97.65.

The soaring world oil prices were also caused by a dispute between Venezuela and ExxonMobil.

Earlier, the American oil company won its claim for freezing the assets of Venezuelan oil company, PDVSA, amounting to US$12 billion.

According to Boediono, Coordinating Minister for the Economy, the government prefers to retain the figures already determined for a year compared to daily fluctuation.

“What we want is what can be maintained over a year. Oil prices actually go up and down from day to day,” he said.

The government, said Budiono, still referred to the oil price assumption that is being discussed by the House of Representatives (DPR).

In the Revised 2008 State Budget, the oil price assumption is set at an average of US$83 per barrel.

“The figure isn't final yet and is still being discussed,” said Budiono.

Anggito Abimanyu, Head of the Fiscal Policy Agency at the Finance Department, also had a similar opinion.

The government, he said, will still be using the nine steps of fiscal safety for anticipating oil price increases.

“The assumption is a price of US$83 per barrel over a year,” he said.

One of the government's nine steps is national oil production amounting to 910,000 barrels per day.

Purnomo Yusgiantoro, Energy and Mineral Resources Minister, said that the government was not worried about world oil price increases.

“What went up was the price in New York. Indonesia's crude price (ICP) isn't fluctuating,” he said.

ALI NUR YASIN | AGUS SUPRIYANTO | GUNANTO | RR ARIYANI