Saudi Arabia’s ADDITIONAL output cuts fuel oil price rally

Saudi Arabia’s ADDITIONAL output cuts fuel oil price rally

Saudi Arabia’s ADDITIONAL output cuts fuel oil price rally

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.

The Office Cast Recreates Jim & Pam's Wedding Dance In Special Reunion
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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.

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