Ahmed Hajee conferred Honorary Doctorate by Gulf Medical University

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.

Mangaluru, May 13: Kinz Foundation started distributing around 1500 food packets daily for migrant workers migrating in different parts of Dakshina Kannada district amidst coastal coronavirus lockdown.

"We are distributing daily 1,500 food packets both vegetarian and non-vegetarian. The number will be increased to 5,000," said businessman Althaf Hussain who arranged food packets on May 13.

"These are trying times. The poor migrants who are being denied of their bread due to the lockdown deserve help and we are trying to bring them food which is most basic needs.” he added.

Bengaluru, Apr 15: The Karnataka government on Wednesday opened a critical care support unit to monitor the progress of Coronavirus patients in Intensive Care Units (ICUs) of various designated COVID hospitals across the State.

Karnataka is the first state in the country to establish a dedicated unit for critical care support, by linking ICUs of COVID hospitals onto a single platform, Medical Education Minister Sudhakar K, who inaugurated it, was quoted as saying in a statement on Wednesday.

Its objective is to monitor COVID-19 patients in ICUs across Karnataka state so that the hospitals are prepared for the potential onslaught of the virus and thereby to achieve zero COVID mortality in Karnataka, he said, adding, it would enable capturing details of ICU COVID-19 patients in real-time