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.
In a written reply, Minister of State for Home, Hansraj Ahir, informed the Lok Sabha on Tuesday that some media reports indicated that some known terrorists have reportedly been inspired by Dr Naik. However, investigations so far in this regard could not find any evidence against the internationally acclaimed orator.
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My dear Venki...I say that both are not same as u said.. Do u know why?
1. Sadhivi Prachi always gives her hate speech. Like kill them kick them out of India.. Salman khan amir khan.. oh khan yeh khan.. many more as u know...
2. Zakir naik says Islam is pure rest others are not a true.. He doesnt says throw, kick, kill etc etc.. If you have any doubts you check from google bhayya and make it clear.. so dont compare lion and dogs! Lion is lion and dogs are always dogs it will never become lion :D
Zakeer Naik has more Fans - Hindus, Christians than Muslims.
His Fans are mostly highly educated, intellectuals.
He never advocates hatreds, animosities. He says truth which are wrongly practiced not following their own respective scripts like Veda, Geethas.
His knowledge in Hindu scripts are more than any common Swamees, pandiths.
Dear venki,
Your statement shows how much innocent you are. How you can compare prachi with Zakir? Did Zakir hate any religion? he is comapring the religions. He is showing what is in hindu scripts mentioned and what you are practising. Example, in vedas it clearly mention that idol worship should not be done. How many of us worshipping Idol? Did Prachi talk about Veda any time? If you listen her speeches it is spitting venom.
He has working, serving the people even with his all wealth, without seeking any personnel benefit. He has been doing it at least last 30-35years as I know it.
It would have not taken this much time to find any irregular activity if he has been committing such.
If does not need much time to know any anti social activity.
He is very much openly operating his activities obeying all the norms.
He is more popular in Europe and US, other countries than in India.
For some people it is very much difficult to digest his popularity and his fair activities.
Unfortunately those Sanghi brothern or Sanghi sympathizers can understand that he is rescuing them from their unknown mistakes.
Whatever he is doing he is not seeking any worldly benefit.
He has a strong faith in God, his sincere efforts will be rewarded in the other permanent life (which will be after death).
Really every Indian should thank God Almighty for bestowing such sincere person.
May God help us to understand truth and Guide us.
Modi's U turn....
TRUTH PREVAILS AND FALSE WILL PERISH...ALHAMDULILLAH
ZAKIR NAIK BECOMES MORE POPULAR....IN'SHA ALLAH
CHADDIGALIGE BURNOOL BAGYA
It is UNIVERSAL truth that he is innocent and just focusing on ISLAM. May almighty bless with you good always.
It is really good news for Zakir Naik and his followers, I was sure he will come up clean as I follow him last 20 years he always support teaching of Allah and Hadees and prophet's teaching. He never criticize other religion but compares to Islam whenever there was Q&A session anybody asks the question. He respect other religion.
Best of luck ZN and continue your good work.
Where are the saffron mfs who were barking and somebody please shit in mouth......
what is the fate of that Lunatic and his associates who have been shouting from the rooftop 24x7.? Is his Time Now come to an END?
Whenever a genuine Muslim targeted almighty Allah saved them, this is enough to realize a mankind that Allah is only a creator of everything nothing else. So everybody should say in one word that \Allah Hu Akbar, La ilaha Illalah\""
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