Update COVID-19 in Indonesia: 70,736 confirmed infections, 3,417 deaths (9 July 2020)
6 July 2020 (closed)
USD/IDR (14,501) +55.01 +0.38%
EUR/IDR (16,343) -41.31 -0.25%
Jakarta Composite Index (5,052.79) -23.38 -0.46%
Besides the novel coronavirus (COVID-19) outbreak, another big news story in March 2020 was the massive decline of global crude oil prices. Not only is the price of oil under pressure because of the enormous slowdown in economic activity as various governments have imposed restrictions (such as travel bans) in an attempt to curb the further spread of the coronavirus, but there also emerged big tensions between some of the world’s biggest oil producers that led to tumbling oil prices.
On 9 March 2020 global oil prices tumbled in a way they had not done – at least not in one single day – since 1991, with the price of a barrel of Brent plunging a whopping 26 percent to USD $31.13. What actually happened here?
Well, oil prices plunged dramatically after Russia failed to agree with Organization of the Petroleum Exporting Countries (OPEC) members (during a meeting in Vienna, Austria, on 6 March 2020). OPEC members, led by Saudi Arabia, said they wanted to cut oil output by 1.5 million barrels per day (bpd) until the end of June 2020 in an effort to boost global oil prices as oil demand had decreased amid subdued global economic growth, COVID-19 fears, and lockdowns, while the oil supply has remained steady.
This article discusses the following:
• What caused the huge plunge in global oil prices in March 2020?
• How has the world's traditional oil power structure changed in recent years?
• Are ultra-low oil prices positive or negative for Indonesia?
• Production, consumption and investment in oil exploration in Indonesia.
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