ID :
85442
Wed, 10/21/2009 - 12:42
Auther :
Shortlink :
https://www.oananews.org//node/85442
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OIL PRICE INCREASING DUE TO SPECULATIVE BUYING: OBSERVER
Jakarta, Oct 20 (ANTARA) - Energy observer Pri Agung Rakhmanto said the increase in world crude oil price which had reached US$80 per barrel was caused by speculative buying.
"The price increase has been triggered by information on that the demand for world crude will increase by about 500 thousand barrels per day in line with the decline of the US dollar value," Rakhmanto said here on Tuesday.
He said that speculative buying of crude in the world market would cause a swift increase or decline in crude prices, depending on the variations of information about it.
Rakhmanto who is also director of the ReforMiner Institute, said based on the fundamental principles crude price should have been in a range between US$75 and US$80 per barrel.
Thus, the oil price assumption as set in the state budget for 2009 at US$60 per barrel would be safe while the assumed rate of the 2010 state budget at US$65 would also be rational.
"The crude price can just reach over US$100 per barrel but the average assumption rate in the 2009 state budget remains safe," he said.
Rakhmanto said that the government should continue to monitor the development of crude price in the world market.
Previously, the finance ministry said that the 2009 state budget was still safe even though the world crude price reached US$75 per barrel at the end of this year.
Head of the Finance Ministry for Fiscal Policy Affairs Anggito Abimanyu said the Indonesia nCrude Pice (ICP) in the 2009 state budget which was set at US$60 per barrel was still safe.***2***
"The price increase has been triggered by information on that the demand for world crude will increase by about 500 thousand barrels per day in line with the decline of the US dollar value," Rakhmanto said here on Tuesday.
He said that speculative buying of crude in the world market would cause a swift increase or decline in crude prices, depending on the variations of information about it.
Rakhmanto who is also director of the ReforMiner Institute, said based on the fundamental principles crude price should have been in a range between US$75 and US$80 per barrel.
Thus, the oil price assumption as set in the state budget for 2009 at US$60 per barrel would be safe while the assumed rate of the 2010 state budget at US$65 would also be rational.
"The crude price can just reach over US$100 per barrel but the average assumption rate in the 2009 state budget remains safe," he said.
Rakhmanto said that the government should continue to monitor the development of crude price in the world market.
Previously, the finance ministry said that the 2009 state budget was still safe even though the world crude price reached US$75 per barrel at the end of this year.
Head of the Finance Ministry for Fiscal Policy Affairs Anggito Abimanyu said the Indonesia nCrude Pice (ICP) in the 2009 state budget which was set at US$60 per barrel was still safe.***2***
