KSA offers India $ 625 bn investment opportunities

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

Dubai, Jul 14: The UAE-based parents of children under 12 stranded in India are in a tight spot with multiple airlines refusing to accept unaccompanied minors.

Starting July 12, Indians wanting to return to the UAE have been given a 15-day window to travel back on the condition that they have valid residency permits. They also have to produce a negative Covid-19 test result.

But parents of minors said they are feeling helpless as children are unable to avail of the travel opportunity despite having return permits.

"It has been more than three months since my daughter has been stuck in India. We have GDRFA approval for her but the airlines are not accepting her booking, saying she is under 12," Poonam Sapre, a Dubai-based mother, told Khaleej Times.

Her daughter Eva Sapre, 10, is in Hyderabad and is awaiting a reunion with her parents.

"She is just 10 and it has already taken an emotional toll on her. She is eager to come back and is asking me every day about her return. This is so frustrating."

Barring Emirates and Etihad, other airlines including flydubai, Air Arabia and Air India Express are not accepting unaccompanied minors. With India extending the travel freeze till July 31, normal flights are yet to resume and only special flights are allowed between India and UAE under a bilateral agreement.

Sapre said only flydubai is flying the Hyderabad-Dubai route, and the carrier has restrictions on minors travelling alone. "My daughter is too young to fly through indirect routes," claims the mother.

When Khaleej Times reached out to the airlines for comment, they confirmed that such rules on unaccompanied minors were already in place even before Covid-19 travel restrictions came into effect.

Another Dubai-based distressed parent, who did not want to be named, said her eight-year-old son is in Kerala and is unable to fly due to airline policies on unaccompanied minors.

"I called up Air India Express and they said this has been their rule even before the Covid-19 outbreak. I am appealing to them to re-consider and make an exception during these trying times so that our children can come home safely," she said.

Faced with this eventuality, some parents are forced to fly out of the UAE so they can accompany their children on the flight back home.

An Indian mother, who is currently in Mumbai, said she flew out of Dubai on Monday morning solely for the purpose of bringing back her twin daughters, aged 10.

"I had no choice. Ideally, they could have travelled together, but under these circumstances I thought it best to get them with me personally," said the mother.

Abu Dhabi, May 5: The overall real GDP (gross domestic product) of the United Arab Emirates is estimated to have grown by 1.7 percent in 2019, the country’s central bank said in a statement on Monday carried by WAM.

"The UAE hydrocarbon sector is estimated to have exhibited a growth of 3.4 percent in 2019. However, non-oil activities advanced at a softer pace growing by 1.0 percent. As a result, overall real GDP is estimated by FCSA (Federal Competitiveness and Statistics Authority) to have grown by 1.7 percent in 2019," said the financial regulator in its Annual Report 2019.

"The spread of COVID-19 is expected to impact trade and supply chain movements, coupled with travel restrictions which paves way for high volatility in capital markets and commodity prices. While the outbreak is expected to negatively affect the global and domestic economies, it is still early to gauge the scale of the economic fallout," the report added.

The report noted that the higher hydrocarbon output, as well as growth in non-hydrocarbon economic activity, supported the pace of the country's overall economic growth in 2019.

"Meanwhile, the fading effect of VAT, the appreciating Dirham, lower energy prices and decline in rents pushed inflation in negative territory. However, the employment rate registered a steady rebound. Looking ahead, the economic outlook for 2020 remains uncertain owing to the COVID-19 outbreak," the report elaborated.