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.
Kuwait: The COVID-19 pandemic has affected all sections of the community in Kuwait, hundreds of NRIs are stranded due to unavailability of flights to fly back home. Leaders of associations belonging to Karnataka state in Kuwait and other part of Gulf countries have initiated a collective effort to discuss the challenges and issues faced by Kannadigas in Gulf Countries during COVID-19 pandemic.
Mr. Ramesh S Bhandary – President of Tulu Koota Kuwait and Mr. Rajesh Vittal KKK president along with Other Gulf Karnataka Association leaders held video conference meeting arranged by GULF NRI Forum with Hon. Chief Minister of Karnataka Sri B.S. Yediyurappa to discuss the issue of COVID19 in Kuwait.
During this video conference, association leaders briefly explained various issues, statistics of emergency cases which include pregnant women, Senior citizens, visit visa expired cases and urgent medical treatment requirement cases who wish to travel back to Karnataka.
Evacuation flights to Bengaluru and Mangalore from Kuwait and other Gulf countries, request for free airline tickets or free quarantine facility at Bengaluru and Mangaluru also requested during this video call.
Dedicated Covid - 19 Helpline number for Karanataka NRIs- Nominate One line Contact person in Karnataka to co-ordinates all Covid related issues of NRI.
Responding to leaders requests, B.S Yediyurappa promised to address GCC Kannadigas concerns during this humanitarian crisis.
On Behalf of Kannadigaru Dubai & KNRI Forum , Gulf Kannadigas & Gulf Karantaka associations leaders expressed the happiness with BS Yadiyurappa - Hon Chief Minister of Karnataka, Raghavendra Yadiyurappa - Member of Parliament - Shivamogga constituency, for hearing problems of NRI and giving assurance of immediate action plan to repatriate needy Kannadigas from Gulf region to Karnataka.
Video conference was attended by Karnataka association leaders of Gulf Countries.
Karnataka NRI Forum Kuwait committee comprising representatives of leading associations of Karnataka in Kuwait such as Tulu Koota Kuwait (TKK), Kuwait Canara Welfare Association (KCWA), Kuwait Kannada Koota (KKK), Buntara Sangha Kuwait (BSK), Billava Sangha Kuwait (BSK), KKMA Karnataka Branch , Indian Doctors Forum and Karnataka Muslim Welfare Association Kuwait (KMWA).
New Delhi, Apr 16: Minority Affairs Minister Mukhtar Abbas Naqvi on Thursday directed state waqf boards to ensure strict implementation of lockdown and social distancing guidelines during the holy month of Ramzan starting next week amid the coronavirus pandemic.
At a meeting via video conferencing, Naqvi asked the state waqf boards' officials to create awareness among people to offer prayers and perform other religious rituals like "iftar (breaking of fast)" during Ramzan, which begins on April 24 or 25, staying inside their homes.
More than seven lakh registered mosques, eidgahs, imambadas, dargahs and other religious and social institutions come under state waqf boards across the country. The Central Waqf Council is the regulatory body of state waqf boards in India.
"We should cooperate with health workers, security forces, administrative officers, sanitation workers. They are working for our safety and well-being even putting their own lives at risk in this coronavirus pandemic," Naqvi said.
"We should also demolish rumours and misinformation being spread about quarantine and isolation centres by creating awareness among people that such centres are only meant to protect people, their families and the society from the pandemic," the minister said.
Naqvi told all the state waqf boards and religious and social organisations that everyone should remain cautious of any type of fake news and conspiracies aimed at creating misinformation.
"Authorities have been working for safety and well-being of all citizens of the country without any discrimination. Such type of rumours and conspiracies are a nefarious design to weaken the fight against coronavirus," he said.
"We should work united to win this fight against corona by defeating any type of rumour, misinformation and conspiracy," the minister said.
Naqvi asked officials of all the state waqf boards to play an active and effective role in ensuring that people follow the guidelines of the Union Home Ministry, state governments and the Central Waqf Council while fulfilling religious responsibilities during Ramzan.
In view of the challenges of the COVID-19 pandemic, all religious and social activities and mass gatherings in all the temples, gurdwaras, churches and other religious and social places of the country have been stopped, he said.
Similarly, any mass gatherings in mosques and other Muslim religious places of the country has also been stopped, Naqvi said.
He said that due to the COVID-19 threat, religious leaders as well as religious and social organisations from all regions of the country, have appealed to people to offer prayers and perform all other religious rituals staying inside their homes during Ramzan.
Most of the Muslim nations of the world have also banned mass gatherings at mosques and other religious places during the holy month, he pointed out.
Prime Minister Narendra Modi, in cooperation with all the state governments, has been working effectively for the safety and well-being of the people, he said.
The cooperation of the people has brought great relief to India in the war against COVID-19 Naqvi said, adding that several challenges are still there before the country.
"We can defeat these challenges of the coronavirus pandemic by following all the guidelines of the central and state governments strictly," he asserted.
Chairman and senior officials from state waqf boards such as Uttar Pradesh (Shia & Sunni), Andhra Pradesh, Bihar (Shia & Sunni), Dadra & Nagar Haveli, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, West Bengal, Andaman & Nicobar, Assam, Manipur, among others participated in the meeting.
State waqf boards from Rajasthan, Telangana, Delhi, Chhattisgarh, Gujarat, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Maharashtra, Odisha, Puducherry, Tamil Nadu, Tripura and Uttarakhand also participated.
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We are already facing lot of problems here without food and money.
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