Plastic granules price is currently increasing due to the effect of crude oil prices at the end of 2017, the increase of crude oil is still felt in early 2018. In the news from sindonews, the Indonesian Oil Price Team of the Ministry of Energy and Mineral Resources (ESDM) released, the average Indonesian Crude Price (ICP) rose to USD60, 9 per barrel in December 2017, up USD1, 56 per barrel from USD59, 34 per barrel in the previous month. This figure sets Indonesia’s record high crude oil prices throughout 2017. The Ministry of Energy and Mineral Resources on its official website said the rise in ICP was influenced by the policy of the Organization of the Petroleum Exporting Countries (OPEC) which extended the time limits on crude oil production until the end of 2018. As quoted from Reuters on Tuesday (9/1/2018), WTI oil prices at the level of USD62, 24 per barrel at 02:52 GMT, 51 cents or 0.8% above their last position. Earlier it marked the highest increase since May 2015 of USD62, 56 per barrel.
The cause of the rise in crude oil prices is due to many factors. By the end of 2017 the UK’s largest oil pipeline, the North Sea Forties, which used to supply 450,000 barrels of crude oil per day, leaked so it must be shut down. In addition there are several international events such as the explosion of the bus terminal at the New York Port Authority, the strike of oil workers in Nigeria, the increasing use of gasoline in the United States during Christmas holidays, and increasing geopolitical risks in the Middle East because of the statement from the president of the United States related to Jerusalem, rising demand for crude oil in China. Other things that helped cause the price of oil continue to increase is the agreement of OPEC and Russia to reduce their oil production. The impact of rising world oil prices is certainly the impact to all areas, including the impact on the price of virgin plastics and recycled plastics. Plastic granules price in 2018 is predicted to continue to rise.