Modi govt seeks report from Karnataka, other states to extend ban on SIMI

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, Jun 25: In a shocking development, as many as five post-graduate (PG) doctors have tested positive for coronavirus in Mangaluru. 

The one male and four female doctors – all aged around 28 years – are asymptomatic and are being treated at the designated covid hospital in the city.

All the five PG doctors of Kasturba Medical College were deputed at Govt. Lady Goschen Hospital and District Wenlock Hospital (Covid Hospital).

Meanwhile, around 30 medicos have been quarantined.

According to sources, the five doctors were staying in a residential apartment in the city. The apartment is likely to be sealed.

Mangaluru, Mar 31: With the Dakshina Kannada district administration relaxing the lockdown from 6 am to 3 pm to purchase essential commodities, panic-stricken citizens rushed to the shops early in the morning itself.

The citizens had formed a serpentine line in front of shops and supermarkets in different parts of Mangaluru and on the outskirts of the city to purchase their requirements.

As a precautionary measure, many were seen wearing masks.

“In spite of waiting in a long queue to purchase, we are not able to get the required essential commodities. Why can’t the district administration ensure enough stock of commodities in the shops and supermarkets,’’ asked a customer who had stood in a queue outside a supermarket at Chilimbi.
People were seen crowding outside markets at Kankanady, Mallikatte, Urwa and Central Market, violating the purpose of social distancing.

Consequently, vegetable prices have increased in the markets and shops. This is despite abundant stocks being available in these markets.

Trucks had unloaded the vegetables at Central Market on Sunday, according to sources. The prices of onions are skyrocketing yet again and is sold from Rs 50 to Rs 55 while a kg of carrot costs Rs 100.

"Why can’t the authorities check the rise in the price of vegetables and ensure that the poor are not inconvenienced," asks Lakshmi, a housewife.