Saudi Aramco is anticipating a pick-up in global demand for crude to 90 million barrels per day by the end of the year, as the company continues to prioritise sales to Asia, where consumption is reviving following the easing of Covid-19-related lockdowns.
The world’s largest exporter of oil places around 70 to 75 per cent of its crude in Asia, where centres such as China and India are key to demand growth.
"We are seeing demand picking up especially in China, with gasoline and diesel picking up to pre-Covid levels,” Amin Nasser, Saudi Aramco’s president and chief executive told investors in a call following publication of the company’s second quarter results.
"Also, in Tokyo, [South] Korea, and India, healthy demand as we are getting into the third quarter.
"Our expectation for demand currently is around 90m bpd. By year end, it will be in the mid-90s. Asia will always continue to be our main market,” he added.
The Covid-19 pandemic crippled demand for crude which hit a low point in April when movement restrictions were at their tightest. This led to a collapse in oil prices, with West Texas Intermediate, the benchmark that tracks US crude, falling below zero in April on storage capacity concerns. Demand has since recovered as countries ease movement restrictions and factory activity resumes.
Organisations such as the International Energy Agency expect global oil demand to average 92.1m bpd in 2020, down by 7.9m bpd from 2019.
Saudi Aramco reported a 73.4 per cent fall in second quarter net profit on Sunday, citing low oil prices and declining refining and chemical margins.
Net profit dropped to 24.62 billion Saudi riyals (Dh24bn), the company said in a regulatory filing to the Tadawul exchange where its shares trade.
In spite of Aramco’s fall in revenue, the company plans to maintain dividend payments of $75bn this year. A quarterly dividend of $18.75bn will be paid out to investors on August 31, which is higher than the $13.4bn the company offered for the same period last year.
Khalid Al Dabbagh, Saudi Aramco’s senior vice president of finance, strategy and development, told investors that the company’s public shareholders were entitled to receive their share of the $75bn dividend payout “irrespective of market conditions”.
Saudi Aramco, which revised its capital expenditure programme to the “lower end” of a $25bn to $30bn range, is currently reviewing its capex budget for 2021 and beyond.
“Our 2021 capital spending is expected to be significantly lower than our previously provided guidance of $40 to $45 billion,” said Mr Al Dabbagh. The company’s upstream capital expenditure of $4.70 per barrel of oil equivalent produced is “the lowest in the industry”, he added.
The state-owned Saudi oil major is expected to continue to work towards raising its production capacity to 13m bpd by 2021. However, the company will not allocate additional capital expenditure to boost capacity by an additional 1m bpd, Mr Nasser said.
Aramco’s total production reached 12.7 million barrels of oil equivalent per day in the second quarter, as the company raised its output in April after the collapse of Opec+ talks.
Saudi Arabia has since reduced output in line with a historic pact by Opec members and key allies to cut 9.7m bpd of output.
The alliance is now reducing the cuts and drawing back 7.7m bpd of production from the markets.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
Scoreline
Liverpool 3
Mane (7'), Salah (69'), Firmino (90')
Bournemouth 0
COMPANY%20PROFILE
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Watch live
The National will broadcast live from the IMF on Friday October 13 at 7pm UAE time (3pm GMT) as our Editor-in-Chief Mina Al-Oraibi moderates a panel on how technology can help growth in MENA.
You can find out more here
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
'Nope'
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UAE currency: the story behind the money in your pockets
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
COMPANY%20PROFILE
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UAE currency: the story behind the money in your pockets
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The five pillars of Islam
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
The%20specs%3A%202024%20Mercedes%20E200
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
RESULTS
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The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
On sale: now
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
MATCH INFO
Qalandars 109-3 (10ovs)
Salt 30, Malan 24, Trego 23, Jayasuriya 2-14
Bangla Tigers (9.4ovs)
Fletcher 52, Rossouw 31
Bangla Tigers win by six wickets
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