Congress will return to power in Karnataka: says DK Shivakumar

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, Jun 9: The total number of positive COVID-19 cases in Karnataka rose to 5,921 on Tuesday after the state reported two deaths and 161 new cases of the virus.

"Two deaths and 161 new COVID-19 positive cases reported from yesterday 5 pm till today at 5 pm, taking the total number of positive cases to 5,921," said Karnataka Health Department.

The toll in the state is presently at 66.

While 164 patients have been discharged today, the number of discharged patients so far is 2,605. The active cases in the state stands at 3,248.

Among the new cases, Yadgir contributed highest (61), followed by Bengaluru Urban (29) and Dakshina Kannada (23). Udupi did not report any new case. More details to follow.

Bengaluru, Mar 19: To better enforce social distancing and prevent further spread of Covid-19, the Karnataka health and family welfare department on Wednesday said it will "stamp the back of the palm" of international passengers advised to be on home quarantine, along with the date they are allowed to get out of home. The stamping process began at 12am Thursday.

Pankaj Kumar Pandey, commissioner, health and family welfare, said: "It is noted that a few passengers under home quarantine are not following the instructions. Therefore, it has been decided to stamp the back of the palm of their left hand with a specially designed stamp which will indicate the last day of quarantine."

He said the special stamp will use an indelible ink and "airports in Karnataka have been instructed to follow this without fail". On average, about 3,000 people are arriving in Bengaluru on international flights every day.

The department said social distancing is the only known method of combating the spread of Covid-19 and added, "International passengers are segregated as symptomatic and asymptomatic."

High-risk flyers kept at mass quarantine unit

The symptomatic passengers (Group-A) are taken to designated hospitals; asymptomatic ones, depending on the port of origin, are taken to the quarantine centre or permitted to go on home quarantine.

At the mass quarantine centre, the asymptomatic passengers are divided into moderate-risk (Group-B) and high-risk (Group-C) categories.

“The high-risk passengers are kept at a mass quarantine centre for medical observation. The moderate-risk passengers are being sent for home quarantine where they need to spend 14 days,” the statement added.

Pandey said: “International passengers changing flights within the country cannot be stopped. Ideally, they should be stamped at the first port of entry when they arrive from a foreign country which is not happening.” He said this issue will be brought to the notice of the Directorate-General of Civil Aviation.