Really don't know how RBI Governor is selected: Sadananda Gowda

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.

Bengaluru, Mar 10: Congress leader NA Haris on Tuesday said that keeping Jammu and Kashmir leaders under house arrest is not democratic.

Speaking to media persons he said, "It is not done. Keeping the leaders under house arrest in Jammu and Kashmir is not democratic."

Haris said that nobody is talking about it. Prime Minister Narendra Modi is not talking about it and nothing is happing.

"About Kashmir, it is better to say less as nobody is talking about it. Prime Minister Narendra Modi is not talking about it and nothing is happening. It does not look good," he told media.

"I think leaders should be brought to the table and discussion on issues should take place. Do whatever has to be done for the country," he added.

The Jammu and Kashmir Administration had on February 5 invoked the Public Safety Act (PSA) against former Chief Ministers Mehbooba Mufti and Omar Abdullah. The duo was detained after the Central government abrogated Article 370 last year.

Chitradurga, Feb 10: President of the BJP State unit Nalin Kumar Kateel on Sunday hit out at Congress leader M. Mallikarjun Kharge for allegedly likening Prime Minister Narendra Modi to a “zero candle bulb”.

Mr. Kateel told reporters here that Mr. Modi was a “1,000 watt bulb that gave light to the world”, and compared Mr. Kharge to a lamp that had burned out politically.

Mr. Kateel charged that Mr. Kharge had become frustrated after losing the elections and after his party did not even consider him for a Rajya Sabha seat. And this had made the Congress leader to make wild charges against the Prime Minister.

Lashing out at the Congress, Mr. Kateel alleged that the Congress was continuing the “divide and rule” policy of the British and accused the former Prime Minister H.D. Deve Gowda of being the “other face of the Congress”.

Mr. Kateel also came down on the former Chief Minister Siddaramaiah. He ridiculed the Congress for the delay in choosing a new KPCC chief after Dinesh Gundu Rao submitted his resignation.