Saudi Aramco Plant Bombed, Observer: World Oil Market Panic

Liputan6.com, Jakarta Energy Observer and Executive Director of Energy Watch Mamit Setiawan, said that the fire Saudi Aramco oil refinery further adding to market concerns about global oil supplies amid the ongoing Russia-Ukraine conflict.

“We can see the market is panicking so much that” world oil prices For Brent, it broke at USD 120 per barrel and WTI at USD 113 per barrel,” Mamit said Liputan6.comSunday (27/3/2022).

The impact of this increase will certainly cause global fuel prices to increase. Supply is also feared to stagnate in the midst of this growing economy.

This could have an impact on the weakening of the global economy, where commodity prices experienced a significant increase.

“For Indonesia, I think it will have a very big impact. Moreover, we are net oil importers where production is lower than consumption.

This could have an impact on our trade balance deficit which will be further away. This can make the rupiah currencyDepressionasi against the dollar, “he said.

On the other hand, the government’s burden will also increase for energy sector subsidies, be it fuel, electricity or LPG. The government’s revenue from the upstream sector will increase, but according to him, the burden of subsidies will be greater.

“Besides, the increase fuel price Of course, non-subsidized fuel cannot be avoided because the price of non-subsidized fuel adjusts to economic prices,” he said.

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