I and B Minister Prakash Javadekar condemns alleged attack on Arnab Goswami

New Delhi, Apr 21: The historic rout in oil markets that sent US crude prices plummeting to as much as minus USD 40 a barrel is unlikely to translate into any big reduction in petrol and diesel prices in India as domestic pricing is based on different benchmark, and refineries are already filled up to brim and cannot buy US crude just yet.

With storage capacity already overflowing amid coronavirus-induced demand collapse, traders rushed to to get rid of unwanted stocks triggering the collapse of US West Texas Intermediate (WTI) crude for May delivery.

Indian Oil Corp (IOC) Chairman Sanjiv Singh said the collapse was triggered by traders unable to take deliveries of crude they had previously booked because of a demand collapse. And so they paid the seller to keep oil in their storage.

"If you look at June futures, it is trading in positive territory... around USD 20 per barrel," he said.

Low oil prices may seem good in short-term but in the long run it will hurt the oil economy as producers will have no surplus to invest in exploration and production which will lead to a drop in production, he said.

He did not comment on retail fuel prices that have been static since March 16.

Oil companies have not changed rates despite a fall in international prices as they first adjusted them against the increase that was warranted from a Rs 3 per litre hike in excise duty and close to Re 1 per litre additional cost of switching over to cleaner BS-VI grade fuel from April 1.

Petrol in Delhi is priced at Rs 69.59 a litre and diesel comes for Rs 62.29 per litre.

"The negative price has no direct impact on India or Indian oil prices, as this has taken place due to crude oil produced and traded within the US. India's prices are driven partly by another benchmark, the Brent, which is still trading at USD 25/barrel. Therefore, the retail price of fuels in India are unlikely to fall," said Amit Bhandari, Fellow, Energy and Environment Studies, Gateway House.

Also, Indian refineries are already overflowing as fuel demand has evaporated due to the unprecedented nationwide lockdown imposed to curb spread of COVID-19. So, they can't rush to buy US crude.

The refineries have already cut operating rate to half because the fuel they produce has not been sold yet.

India imports 4 million barrels/day (1.4 billion barrels/year) of oil. The country has been benefitting from the falling prices of oil for the last five years, when oil dropped from a peak of USD 110/barrel to USD 50-60/barrel last year, enabling India to invest in public service programmes.

"However, the additional USD 30 fall of this week is good for India - but there is also a downside. If oil prices are too low, the economies of oil-rich gulf countries will be hurt, threatening the job prospects of the 8 million Indians working in the Gulf countries. India is the largest recipient of foreign remittances due to these workers – very low oil prices will hurt this cash stream," Bhandari said.

He said the negative price of oil shows how much oil oversupply exists in international markets today. "Global oil consumption has fallen due to the COVID-19 pandemic that traders are willing to pay customers to get rid of the barrels they can't store. The world does not have enough storage capacity, and dumping the oil is an environmental crime."

The first half of April saw Brent crude oil prices plummet 63.6 per cent to USD 26.9 per barrel. Prices of Western Texas Intermediate (WTI), the American oil, had also fallen similarly by 63.1 per cent.

But on April 20, WTI prices turned rapidly negative because traders on the Nymex exchange rushed to offload their May futures positions a day before expiry of contracts (on April 21).

Such WTI futures are traded on the Nymex exchange with contracts settled in physical crude oil. Problem is, those who had gone long are unable to find storage facilities for the oil and had to liquidate their contracts before expiry. This caused the plunge in WTI prices.

Contrast to this, June WTI Nymex futures prices is hovering around USD 21, while Brent for June delivery is at USD 25.

Miren Lodha, Director, CRISIL Research said the demand for crude oil was declining already because of economic slowdown when the COVID-19 pandemic-driven lockdowns crushed it further.

Consequently, oil demand is expected to contract by 8-10 million barrels per day (mbpd) in 2020 assuming demand recovery begins from the third quarter of the year, he said, adding if recovery doesn't happen by then, further demand destruction could occur.

On the supply side, producers reining in output following a strategic deal between OPEC members, Russia and the US.

Under this agreement, OPEC+ would reduce oil production by 9.7 mbpd for May and June, but gradually ease the curb to 7.7 mbpd between July and December 2020, and to 5.8 mbpd till April 2022 to stabilise prices.

"This is expected to reduce some surplus in the market by the end of 2020," Lodha said.

Crude oil demand is expected to decline by over 20 mbpd in April alone. Typically, monthly global demand is about 100 mbpd. Given this scenario, supply curbs would have limited influence.

Consequently, Brent oil prices is expected to be in the USD 25-30 range for the second quarter while increasing marginally in the last 2 quarters of 2020.

"The gigantic inventory build-ups and lack of storage facilities would also put pressure on prices," he said, adding overall Brent could average USD 30-35 in 2020, with a strong downward bias.

More than 50 million people in India do not have access to effective handwashing, putting them at a greater risk of acquiring and transmitting the novel coronavirus, according to a study.

Researchers from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington in the US found that without access to soap and clean water, over 2 billion people in low- and middle-income nations -- a quarter of the world's population -- have a greater likelihood of transmitting the coronavirus than those in wealthy countries.

According to the study, published in the journal Environmental Health Perspectives, more than 50 per cent of the people in sub-Saharan Africa and Oceania lacked access to effective handwashing.

"Handwashing is one of the key measures to prevent COVID transmission, yet it is distressing that access is unavailable in many countries that also have limited health care capacity," said Michael Brauer, a professor at IHME.

The study found that in 46 countries, more than half of people lacked access to soap and clean water.

In India, Pakistan, China, Bangladesh, Nigeria, Ethiopia, Democratic Republic of the Congo, and Indonesia, more than 50 million persons in each country were estimated to be without handwashing access, according to the study.

"Temporary fixes, such as hand sanitizer or water trucks, are just that -- temporary fixes," Brauer said.

"But implementing long-term solutions is needed to protect against COVID and the more than 700,000 deaths each year due to poor handwashing access," Brauer said.

He noted that even with 25 per cent of the world's population lacking access to effective handwashing facilities, there have been "substantial improvements in many countries" between 1990 and 2019.

Those countries include Saudi Arabia, Morocco, Nepal, and Tanzania, which have improved their nations' sanitation, the researchers said.

The study does not estimate access to handwashing facilities in non-household settings such as schools, workplaces, health care facilities, and other public locations such as markets.

Earlier this month, the World Health Organization predicted 190,000 people in Africa could die of COVID-19 in the first year of the pandemic, and that upward of 44 million of the continent's 1.3 billion people could be infected with the coronavirus, the researchers said. 

Kochi, May 10: A total of 698 people who were evacuated from Maldives on INS Jalashwa, arrived here on Sunday around 9.30am (India time), said the Cochin Port officials. This operation is part of Indian Navy's 'Operation Samudra Setu'.

Another 121 from Lakshadweep also arrived at Mattanchery, near here. on MV Arabian Sea - a passenger/cargo ship sailing under the Indian Flag.

Samudrika Cruise Terminal has been opened up for handling the expatriates and Port has taken up necessary refurbishments consistent with the medical protocols.

#SamudraSetuMission #MoDAgainstCorona #bringhomeexpats
As #Kochi eagerly awaits their arrival, #INSJalashwa @indiannavy entering the scenic Ernakulam channel with 698 Indians from Maldives.@SpokespersonMoD @rajnathsingh @MOS_MEA @HCIMaldives @mygovindia pic.twitter.com/kk5rZyWMwf

— PRO Defence Kochi (@DefencePROkochi) May 10, 2020

The Cochin Port Trust officials said the first group of 698 persons evacuated from Maldives comprises 595 males and 103 females. Of this, 14 are children below 10 years and 19 pregnant women.

Among the 698 passengers, 440 are from Kerala, 156 from Tamil Nadu and the rest are from various states in the country.

Ernakulam district collector S. Suhas said all those from Tamil Nadu will be sent to their state in the bus.

The ship is berthed at BTP Jetty and the disembarkation procedures are being carried out at Samudrika Cruise Terminal. It will take around three hours for all the passengers to be cleared.

#SamudraSetuMission #MoDAgainstCorona #bringhomeexpats
Welcome Home!! #INSJalashwa with 698 Indians from Maldives entering #Kochi harbour. First glimpses!!@indiannavy @SpokespersonMoD @rajnathsingh @DefenceMinIndia @PMOIndia @MOS_MEA @MEAIndia @HCIMaldives pic.twitter.com/QW0FusiQUw

— PRO Defence Kochi (@DefencePROkochi) May 10, 2020

According to the protocols, all the Keralaites will be sent for 14 days institutional quarantine at their respective home districts.

Those who are having exemption from institutional quarantine have to be at home isolation.

Among the 121 who arrived on MV Arabian Sea from Lakshadweep include students and those Keralaites who work in the island.

The protocol for these 121 passengers is that since they have been checked there, all these people can go to their homes and be in isolation for 14 days.

The general guideline is if any one shows any symptoms of Covid-19, all such people will be directly sent to Covid hospitals, here.

The distance between Male and Kochi is 493 nautical miles and it began its voyage to Kochi on Friday evening.

INS Jalashwa is an Indian naval ship attached to the Eastern Naval Command. It was acquired from the United States and was commissioned in 2007.

INS Jalashwa has the capacity to accommodate 1000 troops, and comes equipped with extensive medical facilities, including four operation theatres, and a 12-bed ward facility.