Global Oil Price Hike Threatens Indonesia

The global oil price soars since Saudi Arabia’s oil facility got attacked. The devastating attack hit an oil refinery facility in Abqaiq and oil field in Khurais on Saturday (9/14). As a result, Saudi Aramco will lose around 5.7 million barrels of crude oil per day or five percent of the global oil supply. The stock market of the New York Mercantile Exchange on Monday (9/16) opened with the surge of various oil prices. For example, the Brent North Sea crude oil price was up to 12 percent, while the West Texas intermediate (WTI) crude oil price jumped to Rp 59.62 per barrel or up 8.76 percent.

The jump of global oil prices will affect the price of safe-haven assets such as Japanese yen, golds, and bonds since the investors are concerned with the geopolitical consequences of the attack. As quoted by Bloomberg on Monday (9/16), the Energy Aspects Ltd analyst, Virendra Chauhan, assessed that the recent attack would change the perception towards the Saudi Arabian oil infrastructure, famous for its stability. The market would consider it as vulnerable even though the perception will depend on how Saudi Arabia handles the geopolitical tensions.