Will Indonesia be The Victim of Oil Prices?

The political situation in the Middle East is tense now due to the nuclear program in Iran, which is a oil major producer country. If there is military friction than it will affect the world oil supply and prices. Indonesian President, Susilo Bambang Yudhoyono (SBY) is worried that Indonesia could be affected by these political tensions, especially because of the raising oil price.

Middle East conflict and Oil Prices

"Indonesia believes the United Nations and the international atomic agency could play a role in finding the best solution on this issue, hopefully a peaceful settlement could be reached. There is no need to worsen and encourage the use of military force from any party whatsoever," explained SBY.

"If anything happens in the Hormuz Strait , there will be a tremendous upheaval on petroleum as well," Yudhoyono said.

Yudhoyono said that during the current military conflict in the region, the world oil prices directly rise, although no changes in supply and demand.

"So the world really worry that there will be disruptions in oil supply, as it will endanger the world. The rising of the price will benefit the oil-produce countries, but developing countries will suffer because of it. Therefore Indonesia hoped all parties to refrain, "explained SBY.

SBY said that today he would sent a letter to United Nations Secretary-General to make appropriate steps so that it can prevent the oil supplies disruption from the Middle East.

"This is solely for the world economy. Developing countries, including Indonesia, are struggling to enhance its growth," said SBY.

Previously, Petroleum Observer, Muhammad Kurtubi, said the tension between the United States and Iran gives a bad impact to oil-importing countries including Indonesia. Because the conflict could inflate the crude oil price up to U.S. $ 150/barel.

Source: Analisa