Global Energy Market Still Under Pressure

Diversification of energy sources is a strategy that must be taken by Indonesia to anticipate global geopolitical turmoil that keeps crude oil prices high.

KOMPAS/RADITYA HELABUMI

Activities at one of Shell's gas stations in West Jakarta, Monday (7/3/2022). World crude oil prices continue to soar and have penetrated above 130 US dollars per barrel. This condition is increasingly burdensome for Indonesia, which is dependent on oil imports.

JAKARTA, KOMPAS - The deadlock in the Russia-Ukraine negotiations facilitated by Turkey on Thursday (10/3/2022) kept the energy market under pressure. Pressure also came from the lack of clarity in the United States' negotiations with Iran and Venezuela. After touching US$130 per barrel a few days ago, the price of Brent crude oil on Thursday night, according to Bloomberg and Trading Economics, was at $115 per barrel.

Responding to the still high price of crude oil, the International Energy Agency (IEA) announced that it would release some of its strategic oil reserves to relieve pressure. Market excitement is increasing because the United Arab Emirates announced that it is ready to boost production under the agreement of the Organization of the Petroleum Exporting Countries (OPEC). Abu Dhabi said production could be increased by more than 800,000 barrels per day. In fact, OPEC and Russia agreed that the increase in production should not exceed 400,000 barrels per day.