New Saudi king seen holding line on OPEC policy to keep oil output high

January 23, 2015

New Saudi king

Singapore, Jan 23: Saudi Arabia’s new king is expected to stick to an OPEC policy of keeping oil output steady to protect the cartel’s market share from rival producers, even as energy markets face some of the biggest shifts in decades.

Saudi Arabia’s King Abdullah died early on Friday and his brother Salman became king, the royal court said in an official statement.

Salman has named his half-brother Muqrin as his crown prince and heir, rapidly moving to forestall any fears of a succession crisis at a moment when Saudi Arabia faces unprecedented turmoil on its borders.

The new king is expected to broadly continue Abdullah’s policies, analysts say.

“King Abdullah was the architect of the current strategy to keep production high and force out smaller players instead of cutting,” said John Kilduff, partner, Again Capital LLC in New York.

Kilduff said that Salman was known as a defender of Saudi Arabia’s interests and that the market would expect him to keep production high.

FGE analyst Tushar Bansal said: “By and large, as of now no major change is expected in Saudi policies” but he said the market would focus on whether Saudi Arabia’s oil minister might be replaced.

“Ali Al Naimi has been the oil minister since 1995.

Previously, it was reported that he expressed a desire to step down, but King Abdullah asked him to stay on for as long as he is around.

“So, the real question is, if there is a new oil minister soon, will it lead to a change in Saudi energy policy?”.

Crude oil futures initially jumped on Friday but then came off highs and were still trading at levels more than 50 per cent below their most recent peaks in June, 2014.

LAST SUCCESSION

A continuation of existing policies would be in line with what happened after the last succession. In 2005, when King Fahd died, similar concerns over Saudi Arabia’s leadership emerged.

Following the announcement of King Fahd’s death on August 1 2005, Brent rose to an all-time high of almost $61 a barrel.

Crown Prince Abdullah, who had effectively been in charge since Fahd suffered a stroke in 1995, was installed as new king and swiftly calming traders officials stressed that there would be no changes in an oil policy of keeping markets were well-supplied.

HUGE MARKET SHIFTS

Friday’s announcement of King Abdullah’s death comes amid some of the biggest shifts in oil markets in decades.

Oil prices have halved on the back of soaring supplies coupling with cooling demand due to economic slowdown in Europe and Asia, and because of improvements in energy efficiency, meaning producers are earning sharply lower revenues.

As a result, Saudi Arabia faces its first budget deficit since 2009 and it has to navigate difficulties with other OPEC members such as Oman and Venezuela, which disagree with the strategy of not defending prices.

Booming US shale production has turned the United States from the world’s biggest oil importer into a top three producer, with output topping 9 million barrel per day.

Led by Saudi Arabia, OPEC announced last November it was keeping output steady at 30 million barrels per day, pulling down the Brent price by another quarter over the next month as the market digested the fact OPEC would not come to the rescue.

OPEC’s decision not to act, led by Saudi Arabia, was aimed at defending market share against US shale producers as well as other non-OPEC exporters such as Brazil or Russia.

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News Network
July 9,2020

Dubai, Jul 9: The Government of India has announced an additional 104 special repatriation flights from the UAE to India as part of the Vande Bharat Mission, Phase 4 from July 15 - 31.

According to a flight schedule listed on the Ministry of External Affairs (MEA) website, national carriers Air India and Air India Express flights have been scheduled to various cities in 10 Indian states. Each flight has a capacity of 177 passengers.

Vande Bharat Phase 4 officially began on July 3, and in an earlier press briefing Anurag Srivastava, spokesperson of India's Ministry of External Affairs had said 'Phase 4 will focus on repatriation of Gulf-based Indians.

The new additional flights have been organised to cities in Tamil Nadu, Maharashtra, Delhi, Telangana, Punjab, Haryana, Kerala, Uttar Pradesh, Karnataka, and Rajasthan, according to the MEA schedule. To the joy of expats from Maharashtra, at least seven flights have been planned to Mumbai, which has been a less serviced state since the start of the Vande Bharat Mission.

Consul Press, Information, and Culture, Consulate General of India in Dubai Neeraj Agarwal said, "Approximately 100 repatriation flights are planned for the next 23 days, including 50 from Dubai and Sharjah each. If all flights are full, we are looking to evacuate anything between 17,000 to 18,000 passengers in the coming days."

Booking for the newly announced flights will open soon, said Agarwal. "Some of them are already open, and others will be open in the next few days. However, a few flights are subject to slot approvals," he explained.

Commenting on the possibility of flights from India to the UAE, Agarwal said, "We express hope that this too will happen soon."  The flight schedule can be seen here: https://www.mea.gov.in/phase-4.htm

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May 1,2020

Jeddah, May 1: The government of India and its diplomatic missions in the Gulf Cooperation Council (GCC) States have begun elaborate preparations for the massive evacuation of their nationals stranded or needing to return once the lockdown travel restrictions are lifted.

The Indian missions in Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Bahrain, Oman and Qatar have started registration for the return of their nationals. The move coincides with the directive of New Delhi to the Indian Air Force and Navy to get their big engines ready to bring back citizens stuck in the GCC states.

India’s External Affairs Minister S. Jaishankar has stated that the Indian missions in the GCC states have been liaising with local authorities for repatriation of Indians. More than eight millions Indians work and live in the Gulf countries.

The Indian Embassy in Saudi Arabia said that it has issued directives to their nationals who seek repatriation to India to fill an application form so as to facilitate their travel when the authorities lift the travel restrictions. Similar advisories have also been issued by the embassies in other Gulf States.

The Riyadh Embassy said in a press statement that the purpose is only to collect data and no decision has been taken yet regarding resumption of flights to India.

The Embassy will make an announcement with regard to repatriation of Indian nationals when the government of India takes a decision in this regard, the statement said, adding that separate forms have to be filled for each individual, including Indian worker or his or her family members.

The Embassy is in the process of working out the modalities of evacuation of stranded Indians in line with the directions of the government of India, the statement pointed out.

The Embassy and the Consulate General in Jeddah are closely monitoring the situation and are taking all the required measures to ensure the welfare of Indian citizens.

The missions have taken all the necessary measures for the supply of food, medicines and other emergency assistance to Indians in need and that is in coordination and cooperation with volunteers of major community organizations across the Kingdom.

These initiatives have been accelerated following the interactions of Ambassador Dr. Ausaf Sayeed with community volunteers and social workers from all parts of the Kingdom. The Embassy has also been in touch with all major companies in the Kingdom that employed Indian workers to carry out regular monitoring of the workers’ health, especially in labor camps, and take all other precautionary and preventive measures to ensure their health and safety.

According to the plan drawn up by the government of India, the first commercial flights from the Gulf could start after May 3, if the nationwide lockdown restrictions are not extended.

INS Jalashwa, an amphibious assault ship, and two Magar class tank-landing ships are being readied for the evacuation purposes, India’s IANS reported.

These ships, which have a total capacity of 2,000 people, have started making arrangements as per the standard protocols laid out to deal with suspected coronavirus cases like social distancing and sanitization.

The Indian Air Force has been evacuating citizens from coronavirus hit countries such as China, Japan, Iran, Italy and Kuwait since January. The force has stated that it has kept C-17 Globemaster and C-130s on standby which can be used whenever they are required.

Apart from them, Air India flights are also being kept on standby to pick up stranded Indians from the GCC countries.

15 Indian fatalities in western region

Speaking to Saudi Gazette, Indian Consul General Mohammed Noor Rahman Sheikh said that as of Thursday a total of 15 Indian coronavirus fatalities were reported in the western region.

These included seven cases in Makkah, six in Madinah and two in Jeddah. Around 140 Indians have tested positive in the region where most of the coronavirus cases in the Kingdom have been reported.

He said that permission was not accorded from the Ministry of Haj and Umrah to use the Indian Haj mission facility in Makkah as the center to assist the community members with regard to the coronavirus related cases.

“Our medical in charge is in Makkah and with the support of some other staffers, he has been actively involved in lending a helping hand to those Indian nationals who are in distress,” he said.

“We are in regular contact with the Ministry of Health officials in ensuring quick medical assistance to those who are tested positive.” He said preparations are under way for repatriation of Indians once permission is ready to take them home. “We are maintaining a database of all those who contacted the consulate with a request for their repatriation,” he added.

Meanwhile, the bodies of two Indians from the southern state of Kerala who succumbed to the pandemic were buried in Makkah. Naletil Muhammad from Ancharakkandi of Kannoor district, a restaurant worker in Makkah, gave samples at King Faisal Hospital a few days ago after developing symptoms of the disease.

When the hospital authorities advised him to remain in medical isolation, he reportedly preferred to remain in isolation at his residence where he succumbed to the pandemic after a few days.

Muhammad’s two sons, who are working in Riyadh, alerted his colleagues when they failed to contact him over phone. They found him dead at his residence on Monday. Eventually, Ministry of Health officials sent all his six colleagues to medical isolation.

Kottuwala Ippu Musliyar from Thennala, Vengara in Malappuram district, was a well-known social worker in Makkah. He died of coronavirus at Hira Hospital on Wednesday after undergoing treatment for a couple of days.

Mujeeb Pukkottoor, a prominent Indian social worker and general secretary of Makkah chapter of Kerala Muslim Cultural Center, was authorized by their spouses to carry out their burial procedures.

Accordingly Muhammad was buried on Wednesday and Ippu Musliyar on Thursday at the designated area for the coronavirus deceased persons at Sharaie Cemetery in Makkah.

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News Network
April 2,2020

Dubai, Apr 2: A senior Saudi official urged more than 1 million Muslims intending to perform the hajj to delay making plans this year in comments suggesting the pilgrimage could be cancelled due to the new coronavirus pandemic.

In February, the kingdom took the extraordinary decision to close off the holy cities of Mecca and Medina to foreigners over the virus, a step which wasn’t taken even during the 1918 flu epidemic that killed tens of millions worldwide.

Restrictions have tightened in the kingdom as it grapples with over 1,500 confirmed cases of the new virus. The kingdom has reported 10 deaths so far. The Middle East has more than 71,000 confirmed cases of the virus, most of those in Iran, and over 3,300 deaths.

“The kingdom of Saudi Arabia is prepared to secure the safety of all Muslims and nationals,” Saudi Hajj and Umrah Minister Muhammad Saleh bin Taher Banten told state television. “That’s why we have requested from all Muslims around the world to hold onto signing any agreements (with tour operators) until we have a clear vision.”

Saudi Arabia has barred people from entering or exiting three major cities, including Mecca and Medina, and imposed a nighttime curfew across the country. Like other countries around the world and in the Middle East, Saudi Arabia has suspended all inbound and outbound commercial flights.

Each year, up to 2 million Muslims perform the hajj, a physically demanding and often costly pilgrimage that draws the faithful from around the world. The hajj, required of all able-bodied Muslims to perform once in their lifetime, is seen as a chance to wipe clean past sins and bring about greater humility and unity among Muslims.

Standing in Mecca in front of the cube-shaped Kaaba that Muslims pray toward five times daily, Banten also said the kingdom was already providing care for 1,200 pilgrims stuck in the holy city due to global travel restrictions. A number of them are being quarantined in hotels in Mecca, he said.

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