Federal Reserve (FED) to increase the policy interest rate pressuring the economy and commodity prices. The FED increased the policy interest rate for 4 times in 2023, hence the rate of 5.25-5.50% at the end of the year. The aforementioned threats drove OPEC and allies to cut the crude oil production in order to uphold Unit: USD/bbl Petroleum 2023 2022 %Change Crude Intake Million barrels 70.11 63.86 10% KBD 192 175 10% Utilization Rate Refinery 89% 81% 8% RDCC 109% 92% 17% Lube Base Oil 87% 77% 10% Remark: Crude intake capacity is 215,000 barrels per day 1.1.2 Crude Intake and Capacity 150 130 110 90 70 50 30 10 2023 AVG price 82.10 2022 AVG price 96.34 96.77 70.29 Jan-22 Apr-22 Jul-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dubai Price the price, with Saudi Arabia’s additional voluntary cut of 1 million barrels per day starting July 2023. Meanwhile, there was a conflict between Israel and Hamas in early-October 2023 soaring the crude oil price in a short period. Despite not elevating, the conflict built a supply risk amongst the market. 172 Management Discussion and Analysis (MD&A) IRPC Public Company Limited
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