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.
Comments
This is a advance education era. Most of the grown up childrens are well capabe to understand what is good what us bad. What is God's Creation and what is not. In our Inpendence country every one have right to choose their choice.
Orthere no need to interfere or they have right to do any forcefull act fo
Convert the rest or to do forcefull Ghar Wapsi.
Trust street mongers will stop these non sense activity.
Some one faught with his father n left home. Some mentally group's trying to create communal tension in South Kanara surroundings.
State Govt n dept must take strict action n send them behind bar for at least 6 months period is the only right remedy.
Jai Hind
bjp has no other issue and that is the reason they take up converion issue. Its cleared by Police Dept that no case of forced conversion taken place in Suliya. Based on this, Police should ban hate mongers from giving any speech and ban these terrorist organisations.
More & More people converted to Islam in USA & Britain so that they can create another Afaghanistan & Syria
Bopanna...
I feel you need more education on God... U look dumb when u dont study about your enemies.. Dont just depend on cheddis fed info on islam...
Use your own intellect and read your enemies book The QURAn...
I will help U ... read online theQuranProject , well explained for people like you... Try it man.
Another pillar of Islam
1. Bombs
@Sangeeth, Mangalore
Yes! they converted because of listening to zakir naik's speeches. Because he speak the truth. and they liked the truth.
Entire Karnataka incluidng Dakshina Kannada is crying for drinking water. But these shakunis are worried about religious conversions.
I want to ask the bunch of jokers in this forum - Viren, Yogesh & Sangeeth
Your voice speaks that you are really worried of growing popularity of Islam
Why do you think people are forcibly converted? Are they illiterates ?
You will agree to the fact that in this modern age, each product has its own USP and just imagine why there are more Airtel subscribers in the country compared to other telecom providers ?
Are the customers compelled to subscribe for their product ? In this age, every individual are smart enough to decide which one suites him.
So it is foolish to tell people are being converted forcibly
Yogesh...how innocent Hindus became chaddis...this is mind wash from terrorist group RSS
@Yogesh
UK's No 1 News channel
http://www.dailymail.co.uk/news/article-1343954/100-000-Islam-converts-…
@Yogesh proof for yogesh
http://www.dailymail.co.uk/news/article-1343954/100-000-Islam-converts-…
http://www.ibtimes.com/muslims-america-more-latinos-converting-islam-us…
CELEBRITIES WHO CONVERTED TO ISLAM, SO MANY
https://en.wikipedia.org/wiki/List_of_converts_to_Islam
And whoever seeks a religion other than Islam, it will never be accepted of him) ?3:85?.
In this Ayah ?3:19?, Allah said, asserting that the only religion accepted with Him is Islam,
No other religion book says. We dont benifit by converting u people, u are getting benifitted.
At the end of the day, those who doesnt follow and practice islam. He will be the loser.
More educated person is converting to islam than non educated ones.
Highest people are converting islam is from britain and america. There is no pint of force converting.
After 9/11 to prove quran wrong. many started to studing quran, they found that it is the true peace religion. And the terrorists are doing anti islamic. Against islam. So many people converted stil now people are converting.
Many big celebrities like mohammed ali, tyson, tony blairs sister are all converted to islam
please note that hindus converting to islam because of some hate speeches made by hindu leaders like kalladka
@VIren
U should Thank Arabs, the word Hindu is given by Arabs.
The actual Religion is named as Sanathan Dharm. Which nobody Follows.
@viren
How Hindu Population is Increasing, Show me a single Person who converted from Islam to Hindu.
i think u r just telling Opposite,
Plz Check, Ur family Members might have converted to Islam.
Police should arrest all PFI goons , hindu population is increasing day by day and PFI aware about it
Just say in ur heart, La ilaaha illalla Muhammed arra Soorula, u Have passed first stage of islam. No body can stop it.
This is the power of islam.
The Five Pillars consist of:
Shahadah: sincerely reciting the Muslim profession of faith.
Salat: performing ritual prayers in the proper way five times each day.
Zakat: paying an alms (or charity) tax to benefit the poor and the needy.
Sawm: fasting during the month of Ramadan.
Hajj: pilgrimage to Makkah.
No other religion book says so.
Hindus make idols, But i think, the man who makes the idol. is greater than idol.
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