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
South Kanara police are doing wonderful job around...now they must take action against those bajrangies who had done ugly job around this incident....
In this case book the hate mongers and levy heavy penalty on them. They should be jailed for not less than 10 years with penalty of not less that 50 lacs for the loss of property done by the follower of these hate mongers. Take away their voting right and kick them out of karnataka.
If there are no instances of forcible conversions, what action they are going to take against those who accuse without any evidences? What action they are going to take against those hate mongers who incite communal hatred by using falsified allegations? At least a warning that it won't be repeated again or an public apology?
Now a days, Poojary's, Shankaracharya's Are converting to islam.
https://www.youtube.com/watch?v=3rJZWrX-fzk
Crorepati acharya Sanjay dwiwedi, who converted to islam, and preaching islam. Now leading a common life
@viren
UK's No 1 News channel
http://www.dailymail.co.uk/news/article-1343954/100-000-Islam-converts-…
There is no force involved to convert to islam in anywhere of
If nothing is found by the Police, then why these dogs are barking in Kalladka ???/ ...
Dear brother Viren Naren
Please use your intellect that God has given U before it perishes with God's permission... Atleast PONDER on what PREM says and research on it before spreading your VeNOM without knowledge of ISLAM in this forum...
TRUTH will prevail however u try to deceive people... Anyway try your best but also note that U need to look into QURAN before making enemies with the TRUTH.
Without knowledge of your enemy ... U look Dumb.
Viren Kotian,
Who's forcing you to accept Islam???
But, you can be booked for inciting communal hatred between communities using this forum.
Prem and true (anti) Indian are doing religious propaganda here. coastaldigest.com should not entertain such comments. This is not a religious forum. They are encouraging religious conversions. DK police should take necessary action against such comments.
ISLAM is the only religion accepted by God...
Eternal life begins when death happens...
Dont worship the creation of God, thats the only sin which will not be forgiven by God... (associating partners with God...)
Know who is our CREATOR before bowing down to created things..
God is merciful and most compassionate... A honest heart will find God if his intention is right to know about God...
To know about God and his attributes read religious scripture specially the QURAN (the quranproject online) a manual to MANKIND... Read to understand about Creator not to Hate... please, as a human brother ... keep away your hatred and make effort to know who is our CREATOR rather than falling prey to some hate mongers...
USE YOUR GOD GIVEN INTELLECT...
Surah barakah 2:256
There shall be no compulsion in [acceptance of] the religion.
Forcing anyone to convert is not allowed in islam.
No other religion book says so.
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