Saudi Arabia’s ADDITIONAL output cuts fuel oil price rally

Mohammed bin Nayef was a committed ally of the United States and one-time successor to the Saudi throne

Mohammed bin Nayef was a committed ally of the United States and one-time successor to the Saudi throne

Saudi Arabia's state news agency said Value-Added Tax will increase from 5% to 15% as of 1 July, while the cost of living allowance will be suspended from 1 June.

Brent crude oil, the worldwide standard, trimmed its losses and was trading down 0.84 percent at $30.71 a barrel while West Texas Texas Intermediate crude oil, the US benchmark, was lower by 0.36 percent at $24.65.

Al-Jadaan said the pandemic has caused an unprecedented slump in oil demand, decline in economic activity and a rise in expenses needed to stem the spread of coronavirus.

It shall notify the minister of finance Mohammed al-Jadaan Monday, according to the official news agency Saudi Press Agency.

The BBC reports Saudi Arabia's state spending surpassed its income in the first three months of this year, leaving the kingdom with a $9 billion deficit.

That's as oil revenues in the period fell by nearly a quarter from a year earlier to $34bn, pulling down total revenues by 22%.

Thus, the total restriction of output will amount to 5 million barrels per day, counting from the April high, and 3.5 million - if you take the strap in the agreement of OPEC+.

In a statement on Monday, the kingdom's finance ministry cited low oil prices due to a fall in global demand as well as rising healthcare costs.

Train passengers to be compulsorily screened as Railways resumes operations Tuesday
Till 4pm, the railways had not been able to publicise the train list or timings of the departure of the 15 trains. The booking of tickets through agents (both IRCTC agents and railway agents) will not be permitted.

Saudi Arabia, the top crude exporter and the Arab world's biggest economy, has shut down cinemas and restaurants, halted flights, and suspended the year-round umrah pilgrimage in a bid to contain the deadly virus.

Saudi Arabia has had some 41,000 confirmed cases of the coronavirus, including 255 deaths.

Saudi Arabia is also planning to slash allocations for the Vision 2030 project envisioned by Crown Prince Mohammed bin Salman (MBC). The tax on most goods and services was first introduced in Saudi Arabia in 2018 as a way to increase revenue.

Additionally, the government will discontinue the cost-of-living allowance, starting in June.

"These measures are painful, but necessary", the finance minister said.

State media said the fiscal moves would raise state revenues by 100 billion riyals.

Meanwhile, the poorest Saudis will continue to receive benefits.

Since its inception, the program has paid some $19.5 billion to citizens with $240 in average monthly support per family.

Recommended News

  • Zoolander actor and comedian Jerry Stiller has died

    Zoolander actor and comedian Jerry Stiller has died

    He appeared opposite his son in several films, including Zoolander , where he played the gold lamé-clad Maury Ballstein. Jerry Stiller may be best known to modern audiences for playing George Costanza's cranky father Frank in Seinfeld .
    YouTube Star Corey La Barrie Dead at 25 in Car Crash

    YouTube Star Corey La Barrie Dead at 25 in Car Crash

    Clips from social media show La Barrie drinking and dancing in his LA home earlier on Sunday. We're sending our deepest condolences to Corey's family, friends, and loved ones.
    MIUI 12 global rollout starts on May 19

    MIUI 12 global rollout starts on May 19

    Connectivity options include 4G VoLTE, Wi-Fi 802.11ac, Bluetooth 5.0, GPS/ A-GPS, NavIC, USB Type-C, 3.5mm headphone jack, etc. Even worse is the fact that the phone remains on MIUI 10, while Xiaomi's other phones are on MIUI 11 already.
  • After Clash With Indian Soldiers In Sikkim, China's Guarded Response

    After Clash With Indian Soldiers In Sikkim, China's Guarded Response

    No shots were fired and according to one Indian Army officer, the incident was resolved mutually as per established protocols. A stalemate in relations was created and the situation normalised only after both sides agreed to disengage in August 2018.
    Washington in talks with chipmakers about building U.S. factories

    Washington in talks with chipmakers about building U.S. factories

    He said it would be in the best interests of the United States and Intel to explore how the company could build a plant. TechCrunch has contacted Intel and TSMC for comment.
    BLS April jobs report: Unemployment skyrockets to 14.7%

    BLS April jobs report: Unemployment skyrockets to 14.7%

    Workers' economic sacrifices allowed the United States to keep healthcare capacity from being exceeded in most of the Nation. By some calculations, the unemployment rate stands at 23.6 per cent, not far from the Depression peak of almost 25 per cent.
  • 'Absolute chaotic disaster': Obama slams Trump administration's handling of coronavirus

    'Absolute chaotic disaster': Obama slams Trump administration's handling of coronavirus

    The Democrat-Media Complex are colluding to make the coronavirus as politically damaging to President Trump as possible. The U.S. now leads the world in confirmed Covid-19 infections, with almost 1.3 million as of Saturday.
    U.S. Soccer star Alex Morgan gives birth to first child

    U.S. Soccer star Alex Morgan gives birth to first child

    Her season with the Orlando Pride in the National Women's Soccer League was cut short previous year by a knee injury. Charlie is their first child together . "Alex you're such a warrior", he wrote with a pic of his baby girl.
    Holyfield open to charity bout against Tyson

    Holyfield open to charity bout against Tyson

    In the second fight Tyson bit Holyfied's ear, leading to his disqualification. "The body don't come back as well". And it is not as if turning down Amatruda's offer will affect his bank balance.
  • Two Children Die From Severe Illness Linked To Coronavirus

    Two Children Die From Severe Illness Linked To Coronavirus

    So how is this illness linked to COVID-19 similar to the Kawasaki disease? "We're not so sure that that is the fact anymore". The health commissioner said that children above the age of 2 should wear face coverings outdoors.
    USA  says Chinese are hacking Covid-19 vaccine research

    USA says Chinese are hacking Covid-19 vaccine research

    It's the latest development in a media war between Washington and Beijing that has intensified during the coronavirus pandemic. Beijing responded by effectively expelling US journalists working at three American newspapers in China.
    Another Cargill plant closes after COVID-19 outbreak

    Another Cargill plant closes after COVID-19 outbreak

    Other provinces are also taking small steps to reopen, albeit at a slower pace than the hardest-hit province. The plant will close from Wednesday to Friday so all workers can be tested, Larouche said.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.