Eshwarappa demands ban on PFI

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 2: Karnataka recorded a biggest single day spike of 388 COVID-19 cases, with returnees from neighboring Maharashtra continuing to add to the state's tally, taking the total number of infections in the state to 3,796, the health department said on Tuesday.

With 367 out of 388 new cases being returnees from other states, mostly from neighboring Maharashtra (357), the Karnataka government said it was mulling over increasing institutional quarantine for those returning from the western state. Meanwhile, achieving a milestone in the battle against the coronavirus,the Karnataka Institute of Medical Sciences at Hubballi has successfully treated a COVID-19 patient through plasma therapy.

"Maharashtra (returnees) is a major worry for us, already 15,000-20,000 people have come from Maharashtra, still 2000 odd people may come to each district, as we have allowed so many people already, we have decided to allow them also, Revenue Minister R Ahoka said.

Speaking to reporters here, he said ".....cases coming from Bombay and Pune are turning out to be positive, we have to take extra caution, seven days quarantine (institutional) is of no use, we want to increase it specifically for those returning from Maharashtra.

We will take a decision soon and issue order." Chief Minister B S Yediyurappa earlier directed district authorities including the Deputy Commissioners and Superintendents of Police to camp at taluk centres and work towards curbing the spread of COVID-19. Pointing out that COVID-19 cases were increasing in the state because of returnees from Maharashtra, he asked officials to take all necessary measures to check it, his office said in a release. The previous biggest single-day spike was recorded on May 31 with 299 cases. As of June 2 evening, cumulatively 3,796 COVID-19 positive cases have been confirmed in the state, which includes 52 deaths and 1,403 discharges, the health department said in its bulletin.

It said out of 2,339 active cases, 2,325 patients are in isolation at designated hospitals and are stable, while 14 are in ICU.

According to the bulletin,75 patients have been discharged today.

Medical Education Minister K Sudhakar said Karnataka Institute of Medical Sciences in Hubballi has successfully treated a COVID-19 patient through Plasma Therapy.

"Karnataka achieves yet another milestone in battle against #COVID19.

KIMS Hubli has successfully treated a Covid19 patient through Plasma Therapy & is the first institute in the state to accomplish this. Congrats to KIMS doctors & staff for this feat!" the Minister tweeted.

Among the districts where the new cases were reported, Udupi accounted for 150 cases, followed by Kalaburagi 100, Belagavi 51, Raichur 16, Bengaluru urban 12, Bidar 10, nine each from Bagalkote and Hassan, Davangere seven, Yadgiri five, four each from Mandya and Vijayapura, Bengaluru rural three, two each from Chikkaballapura, Dharwad and Tumakuru, and one each from Kolar and Haveri.

Udupi district tops the list of positive cases with 410 infections, followed by Kalaburagi 405 and Bengaluru urban 397.

Among discharges too Bengaluru urban tops the list with 237 discharges, followed by Kalaburagi 128 and Davangere 121.

A total of 3,19,628 samples have been tested so far, out of which 14,812 were tested on Tuesday alone.

According to the bulletin, 3,10,967 samples have reported as negative, 13,915 on Tuesday alone.

Managluru, May 15: Kannadigas in Saudi Arabia deserve more attention from the government amidst covid-19 crisis as they remit huge amount of money to their home state and ultimately get no benefit, opined U T Khader, Mangaluru MLA.

The former minister held a video conference with stranded Kannadigas in Saudi Arabia on May 15 and assured to do his best to convince the Centre to operate more repatriation flights from Saudi Arabia to Karnataka. 

He also said that he would urge the chief minister of Karnataka to announce a separate rehabilitation package for Indian expatriates who have lost their jobs in Gulf countries amidst covid-19 lockdown.

Mr Khader also interacted with two medical emergency patients and promised them to inform the Indian embassy in Riyadh to facilitate their homeward journey via Dammam-Bengaluru flight in the second phase of Vande Bharat Mission. 

Mr Khader expressed regret over the inept handling of passengers from Dubai at Mangaluru International Airport on May 12 and said that next batch of passengers would not face such problems on arrival.