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.
Comments
anybody got their grevences answered here
corporation lights of cemetrey not glowing since two months. On 1st November 2019 is holy souls day. Kindly repair the lights at the earliest.
Fr. Joseph J. Lobo
Parish Priest
Street light is not working since 15 days. On 23rd July 2019 complaint lodged with Mobile No7353933410. Till date they are not responding
hello / madam
Keeping the city clean is our duty. I know not everybody is following that. We need some awareness program
to keep our city clean green and hygenic. Its our duty to keep the environment clean and place around us.
But it is also the duty of Corporation to maintain the cleanliness aroud the city, in some parts of the city like market, near clock tower circle its not been getting cleaned from past few days. Please do the needfull for betterment of tomorrow
thank you
Dear Madam, I have purchased 1 BHK flat in Green City, Vamadapadav on October, 2013 and paid full amount to builder T3 Urban Developers LTD. As per agreement possession was in December, 2015 but still building is not ready.
There were 5 buildings in Green City and at a time builder started 3 buildings construction work. I have purchased middle of the building and that building 1st floor slab only completed and since long time work stopped.
Last year builder agreed to give me flat in 1st building but building’s interior work is still pending and since 1 year work totally stopped.
Presently builder is not picking call or not responding for query. It seems that he is cheating with me. Kindly help me to resolve this issue. I will be grateful to you.
Sir/Madam,
Four street lights are not working on Raghavendra Matt Road, Hosabettu, Surathkal since long.
The roads are in Shabby condition and hence difficult in the night to Padastrians.
Kindly arrange to replace the treet lights on Main road, Raghavendra Matt Road, Hosabettu, near and after the Areca Field.
the kalbavi road in kottara ashok nagar was provided with ugd pipe line during last year. as usual the centre of road was dug up in march 2018 for this purpose making the road not motorable during the monsoon of 2018.
the asphalt work is now planned now during nov2018 by mcc. this road is very narrow and not having the foot path or road side drain at all.
both the ugd agency as well as the asphalting agency have put the muck/soil on the sides of the road, making it now impossible to walk when there is traffic. also during monsoons , storm water from the entire stretch for about 500 ft will flow on this road itself which is diverted to my compound/pure water sump due to the faulty work of mcc.
in spite of repeated requests/complaints to the commissioner,corporators, engineers of mcc, publishing of the photos of the same in some news papers,action is yet to be taken.
now at least it is requested to remove all the above dumped muck /soil on either sides of this road which is also preventing the entry of monsoon water th the existing drain near the starting point of sagar court.
Street light not working at kulai kavinakallu 2nd street
Relevant department has to look into the matter seriously and work on it and mark the matter as closed so that its notified as closed. Its a good move for public and public workers to work hand in hand
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