Singapore — Indonesia's Ministry of Energy and Mineral Resources has set the price for Minas crude lifted in April at $69.44/b, up $4.66/b from March, according to the monthly selling price notice seen by S&P Global Platts on Tuesday.
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Other grades were raised by between $4.65/b and $5.01/b for April. Indonesia settles its monthly ICPs retroactively.
The ministry revised its crude price formula from July 1, 2018 to reflect the market value of the country's flagship crude oil grades better. The formula is based on Platts Dated Brent plus/minus an alpha.
The alpha is calculated based on the published outright assessments of the Indonesian crude grades during the current month, or the average of published prices for two months -- the previous month and the current month.
The quality of the crude grade is also considered, as well as trends in international crude prices, national energy security and the gross product worth of the crude grades.
With Dated Brent in April at $71.26/b and the outright ICP for Minas set at $69.44/b, the alpha for the month is equivalent to minus $1.82/b.
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