Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled.
Brent, the international crude marker, slipped to $18.10, indicating that markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging under $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.
Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to smother the outbreak slashing demand for crude by as much as a third.
Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday. Analysts at Citi warned that “if global storage worsens more quickly, Brent could chase WTI down to the bottom”.
The collapse in the May WTI contract was partly a technical product of the fact that it expires on Tuesday, meaning trading volumes were low and making the contract for June delivery more noteworthy, analysts said. That contract held above $20 a barrel on Monday but slid as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than a blip and that the entire global oil market faced challenges.
Goldman Sachs analysts said the June contact was likely to face downward pressure in the coming weeks, pointing to the “still unresolved market surplus”.
“As storage becomes saturated, price volatility will remain exceptionally high in coming weeks,” they said. “But with ultimately a finite amount of storage left to fill, production will soon need to fall sizeably to bring the market into balance, finally setting the stage for higher prices once demand gradually recovers.”
Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.
“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.
European equities traded lower, partly dragged down by weaker energy stocks. The continent-wide Stoxx 600 was down 1.9 per cent, with its oil and gas sub-index dropping 3.3 per cent. In London the FTSE shed 1.7 per cent, while Frankfurt’s Dax slid 2.3 per cent.
Equities were also broadly lower in Asia, with futures tipping US stocks to fall 1 per cent when trading in New York begins later.
On Wall Street overnight, the S&P 500 closed down 1.8 per cent, partly because of weakness in energy shares, but also due to increased pessimism over the time it will take for countries to emerge from lockdowns.
In fixed income, the yield on the 10-year US Treasury fell 0.03 percentage points to 0.585 per cent as investors retreated to the safety of the debt.
Anant Kumar Dattatreya Hegde, a member of parliament, who represents coastal Karnataka's Uttara Kannada constituency, in a press meet at his native Srisi on Sunday stated that terrorism could not be wiped out as long as Islam remained in this world.
Comments
Death to the Global Jihad.
Death to Sharia.
Death to Islamism.
Jai Hind!
sir in my vision you are the great indian leader
sir in my vision you are the great leader in the indian history
sir in my vision you are the great leader in the indian histor
To Bopanna,
Hi Guy, Just study the fact in India itself Islam is growing faster than any religion. Most of the them who embraced Islam are Hindus. But they are educated, I don't know your knowledge
You need to refresh your mind. Please Don't waste the reader's time.
.
What's wrong in what he said ? He spoke the truth that Islam is a violent religion
Send him to mental hospital.
He should be wiped out and NOT ISLAM......Where are you Naren....we are missing you.... Lost in the Bangkok streets.....If you are still there, please take this MAD MAN to Bangkok....
This is a failed attempt to divert the public concentration from the issues like Rohit Vemula and JNU in Karnataka... Chaddi's will never learn from history.....
Nobody in India gave such statement against any religion.
Poor guy forgot Dr. Chittaranjan's fate in the same Bhatkal.
Now he is in risk, why unnecessarily inviting unbearable venture.
He is in Bhatkal. better apologize or prepare for the worst.
Don't worry until today those tried to wipeout islam are themself wiped out,it is a promise of almighty to the people till the last hour comes let witness those alive.
What a Joke!!!
If you want to come to Lime Light you utter such non-sense, actually he is pleading not appealing to the Media to publish his speech, otherwise who will know him, never heard his name before, now he is Star (Villain Star),
Way to go Anant Kumar!!
Like that barking only uneducated Pagal Kuttha so leave it.
More the people trying to defame Islam the more Islam is spreading. 9/11 was done to defame Islam since then more people studies Islam and accepted Islam. allahu akbar
Poor guy.. Joined politics couldnt do anything for the community. Nobody even knows him.. He did nothing. Now he wants to come on news headlines, want to be famous as getting old. Want to be hero among people who provoke.. Want to be another donald trump of india. My dear nobody cares for you. Nobody wants to know you.. Hehe what a waste having you in india.
Mr.AKD...just asks with your own Hindu Brothers & sisters those who live in Arabian Sand , how they enjoy their peace life with their family & children in Muslim countries ! Then you will come to know the real fact of terrorism.
COMMUNAL RAGAV, GO TO NEPAL FOR FREEDOM SPEECH ,///// WE NEED PEACE HERE,, [JAI HIND]
one more idiot appears in chaddi parivaar.
This stupid is dangerous to peace loving Hindu society
You better try yourself rather than asking others to do it. Most of the people in BJP are gone mad. O Hegde Islam is near to your door step. Come out if you dare to know the beauty of Islam.
Metal Manja This MP,
More you try to wipe out more it spreads
This RSS dog is trying to spread virus poison at Uttara Kannada surroundings. Hope peace loving Kannadiga's will kick him from power shortly.
All are well aware these are the special training from his dirty nagpur base.
But rss will never succeed fro any angle.
He is in the state of \vitiated by perversity nature\""
Where is the commnet from Ibraheem Hussain Udupi.
We muslims fuck you anthya kumra hedge...
See his pig face donkey...why media is publishing this type of dog news...
Islam is the religion which brings peace and tranquility to entire human kind, now it is your turn to accept Islam and do some good things, otherwise you will have to taste hell fire hereafter. Also you have to believe in last and final messenger of Allah \Mohammed Sallalahu Alaiwassallam\".....
I pray. May Allah give you hidaya (goodness) and accept Islam as soon as possible...."
Dear Mr. Anantha its not like make in india or Mad in india or something like that , this is Isalam one and only Fast Growing Religion throughout the world no one can Stop, you are a just Dust for our Religion.
Islam is a religion of ALLAH.No one can harm Islam.Bec Allah knows how to protect his religion.Dont take it seriously leave him (Poor Guy).Allah is the great planer than the so called ordinary people.For them this world is All.But for us Life begins AFTER DEATH.So you people enjoy here we Muslim will enjoy Later.(In sha allah)
He wants to capture the attention of Mr,Modi by giving such statements where Modi likes such statements and will they will get the Minister post in his Cabinet.Like Anupam Kher got Nation Award for speaking against Amir Khan.
WHAT HE KNOW ABOUT ISLAM , USELESS GUY HE IS ..
I THK THIS TIME HE NEED TICKET UN ELECTION SO HE BARKING LIKE DOG
IF SOMEINE TALK AGAINST THE ISLAM OFFCOURCE BJP WIL GIVE TICKET ,
Y MEDIA HE HIGHLIGHTED THIS USELESS GUY NEWS..
Intolerence.....
He thought he became hero, barking like dog.
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