Pakistan imitates India, calls up Xi Jinping as chief guest at military parade

Moscow, Jun 7: OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.

The group, known as OPEC+, also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.

OPEC+ had initially agreed in April that it would cut supply by 9.7 million barrels per day (bpd) during May-June to prop up prices that collapsed due to the coronavirus crisis. Those cuts were due to taper to 7.7 million bpd from July to December.

“Demand is returning as big oil-consuming economies emerge from pandemic lockdown. But we are not out of the woods yet and challenges ahead remain,” Saudi Energy Minister Prince Abdulaziz bin Salman told the video conference of OPEC+ ministers.

Benchmark Brent crude climbed to a three-month high on Friday above $42 a barrel, after diving below $20 in April. Prices still remain a third lower than at the end of 2019.

“Prices can be expected to be strong from Monday, keeping their $40 plus levels,” said Bjornar Tonhaugen from Rystad Energy.

Saudi Arabia, OPEC’s de facto leader, and Russia have to perform a balancing act of pushing up oil prices to meet their budget needs while not driving them much above $50 a barrel to avoid encouraging a resurgence of rival U.S. shale production.

It was not immediately clear whether Saudi Arabia, the United Arab Emirates and Kuwait would extend beyond June their additional, voluntary cuts of 1.18 million bpd, which are not part of the deal.

BULGING INVENTORIES

The April deal was agreed under pressure from U.S. President Donald Trump, who wants to avoid U.S. oil industry bankruptcies.

Trump, who previously threatened to pull U.S. troops out of Saudi Arabia if Riyadh did not act, spoke to the Russian and Saudi leaders before Saturday’s talks, saying he was happy with the price recovery.

While oil prices have partially recovered, they are still well below the costs of most U.S. shale producers. Shutdowns, layoffs and cost cutting continue across the United States.

“I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world,” U.S. Energy Secretary Dan Brouillette wrote on Twitter after the extension.

As global lockdowns ease, oil demand is expected to exceed supply sometime in July but OPEC has yet to clear 1 billion barrels of excess oil inventories accumulated since March.

Rystad’s Tonhaugen said Saturday’s decisions would help OPEC reduce inventories at a rate of 3 million to 4 million bpd in July-August. “The quicker stocks fall, the higher prices will get,” he said.

Nigeria’s petroleum ministry said Abuja backed the idea of compensating for its excessive output in May and June.

Iraq, with one of the worst compliance rates in May, agreed to extra cuts although it was not clear how Baghdad would reach agreement with oil majors on curbing Iraqi output.

Iraq produced 520,000 bpd above its quota in May, while overproduction by Nigeria was 120,000 bpd, Angola’s was 130,000 bpd, Kazakhstan’s was 180,000 bpd and Russia’s was 100,000 bpd, OPEC+ data showed.

OPEC+’s joint ministerial monitoring committee, known as the JMMC, will meet monthly until December to review the market, compliance and recommend levels of cuts. JMMC’s next meeting is scheduled for June 18.

OPEC and OPEC+ will hold their next scheduled meetings on Nov. 30-Dec. 1.

Washington, Jul 1: The United States has approved four coronavirus vaccine candidates for clinical trials, Food and Drug Administration (FDA) head Stephen Hahn told reporters.

"Four vaccines have been approved for moving into clinical trials... and another six are in the pipeline for us to review," Hahn said during a press briefing on Tuesday.

The US Administration launched in May Operation Warp Speed, a joint project of Health and Defense Departments, which aims to deliver 300 million doses of a vaccine for COVID-19 by January 2021.

The country's top pandemics expert Anthony Fauci warned on Tuesday, however, that there is no certainty the United States will be able to develop a vaccine against COVID-19 that works and will be safe.

Data on vaccine effectiveness, he added, may be available in the winter or early next year.

London, Feb 12: Fugitive liquor baron Vijay Mallya returned to the courtroom here on Wednesday, the second day of hearing at the UK High Court, where the former billionaire has appealed against the extradition decision of Westminster Magistrates Court in December 2018.

On being asked about his expectations from the lengthy appeals process against the extradition order as today is the last day for Mallya to present his defence, the embattled former Kingfisher Airlines boss replied, "I have no clue. You see. I'll also see it. Let's not get into a speculative game."

When asked on what would happen if Mallya loses the case and has to return to India, the liquor baron responded: "We do have arguments."

The UK High Court, on Tuesday, had also heard Mallya's appeal against the Westminster Magistrates' Court order extraditing him to India to face alleged fraud and money laundering charges amounting to Rs 9,000 crore.

Mallya was present in the court along with his counsel Clare Montgomery during the hearing. Officials from Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) along with counsel Mark Summers representing the Indian government were also present.

When the judge asked if there was a timeline in the case, Clare said," This is a very dense case," involving multiple individuals and organisations and that not everything had been taken into account by the magistrate Emma Arbuthnot in her ruling against Mallya.

Montgomery contended that the magistrate's ruling had been riddled with "multiple errors". She also brought into question the admissibility of documents submitted by the Indian government - including witness statements and emails that proved crucial in the ruling by judge Arbuthnot, who found "clear evidence of misapplication of loan funds" and that there was a prima facie case of fraud against Mallya.

As she had done throughout the trial, Montgomery continued to assert that Mallya had not acted in a fraudulent manner or run a pyramid and that the collapse of Kingfisher Airlines was, in fact, the failure of a business in difficult economic circumstances.

She also reiterated concerns about the conduct of the Central Bureau of Investigation (CBI) in bringing charges against Mallya, claiming that the tycoon had been made a scapegoat.

Montgomery also stated that the Indian government had presented the loan taken out by Kingfisher Airlines, not as a simple business loan but was part of a larger and elaborate attempt at defrauding the banks by Mallya and Kingfisher Airlines management.

This, Montgomery contended, was but one example of a wider misinterpretation of the case by judge Arbuthnot.

The High Court justices reprimanded Montgomery for concentrating on the evidence - in essence rehashing the case presented at the lower court - rather than the apparent "mistakes" made by judge Arbuthnot in her ruling.

Mallya remains on bail of £650,000 as he has done throughout this legal process.

The Crown Prosecution Service which is representing the Government of India will present its case for the extradition of Mallya on Wednesday.

The 63-year-old businessman fled India in March 2016 and has been living in the UK since then.