Full budget row: CM finds support in deputy, DKS

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, Apr 16: The lockdown in the wake ofthe coronavirus pandemic has turned out to be a deeply painful story for the Kannada film industry.

Schedules have gone awry following the stay-at-home curbs and operators in Sandalwood, as the industry is popularly known as, say about 100 films under production are affected.

They include big budget movies- 'Raja Veera Madakari Nayaka', 'Kotigobba 3', 'Robert' and 'Yuvaratna.'

Noted producer Rockline Venkatesh told P T I that the loss to the industry is to the tune of hundreds of crores of rupees.

In addition, it's a challenge for producers to secure the content of their movies from "piracy and leak" during long periods of time before their release, Venkatesh, who is Secretary of Karnataka Cine Artistes' Association, said.

A leading distributor said even after the lockdown is lifted and situation returns to normalcy, it remains a big question if investment in film business will pay off at all.

"People don't have money. We will know the impact when things become normal. Questions many ask if people will return to cinema halls like the way they did before or they prefer to stay away from crowd."

Venkatesh, who had also produced Rajinikanth-starrer 'Lingaa' and co-produced 'Bajrangi Bhaijaan' with Salman Khan in the lead role, said it would take at least one to one-and- half years for the industry to be back on its legs.

"That too if the government does hand-holding but if the industry faces a bad hit in terms of income tax and GST and other taxation, 80-90 per cent of the industry will face closure," he said.

"It does not matter if the government does not help the industry but they should not trouble us with things like IT and GST," Venkatesh, who is also a distributor and artiste, said.

A top director said people's "behaviour" towards movies is crucial for the industry's health in the post lockdown scenario.

"With people likely to shy away from going to malls, cinema theatres because of large gatherings there, it's going to be a long road to recovery for us", an industry insider said.

Striking a philosophical tone, Venkatesh said all that people worry now is to save their life and keep good health, adding, amassing money and wealth is the last thing on their mind.

Producers Soorappa Babu and Umesh Banakar, who is also Vice-President of the Karnataka Film Chamber of Commerce, told P T I that the industry has taken a huge hit.

Banakar said the loss to the industry due to the lockdown is at least Rs 1,000 crore.

"The coronavirus has affected the entire world. We don't know what to do; we just have to wait," Soorappa Babu, producer of Kiccha Sudeep-starrer 'Kotigobba 3', said.

Bengaluru, Apr 20: Close on the heels of the Padarayanapura vandalism, Karnataka Cabinet on Monday decided to promulgate an ordinance that gives special powers to implementing authority and also provide protection to frontline health workers.

Briefing media after the Cabinet meeting here, Minister for Law J C Madhuswamy said that the ordinance will be on the lines of one promulgated by Kerala and Uttar Pradesh governments.

“Through the ordinance, a State Epidemic Act will be enacted to protect health workers and any non-cooperation will be punishable. Also, any attempt to deliberately spread the disease or float rumours will attract action,” he added.