Not in a position to fight BJP alone; will join hands with others in LS polls: Karnataka Cong chief

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, May 25: After facing flak from the opposition for skipping quarantine rules to contain COVID-19 spread, Union Minister Sadananda Gowda on Monday said there are certain exemption clauses for those who hold certain responsible posts, adding that he cannot go under quarantine as he has to ensure medical supply in every part of the country.

"Guidelines are applicable to all citizens, but there are certain exemption clauses, for those who hold certain responsible posts," Gowda told media on being asked about allegations by opposition parties that he did not go to required institutional quarantine after domestic air travel from Delhi to Bengaluru.

"I am a Minister and I am heading Pharmaceutical Ministry. If the supply of medicines and other things is not proper then what doctors can do for patients, is it not a failure of government? It' is my responsibility to ensure the supply of medicines to each corner of the country," he said.

Earlier in the day, the BJP MP, who arrived at Bengaluru airport from Delhi and straight away got into his car and drove to his residence. He skipped the institutional quarantine measures as set by the Central government.

Karnataka Director General of Police Praveen Sood said: "Incoming domestic flight passengers from Maharashtra, Rajasthan, Delhi, Gujarat, Tamil Nadu, Delhi and Madhya Pradesh will undergo 7-day institutional Quarantine followed by home quarantine."

Udupi, July 23: A 70-year-old woman, who had tested positive for coronavirus, passed away last night in Udupi taking the district’s covid-19 death toll to 12.

The deceased was a resident of Chantharu in Brahmavar. She was an asthma patient. For past few days, she was suffering from cold and fever. 

Her throat swabs were sent for testing and the report came positive last evening. She breathed her last at home even before being shifted to hospital. 

The woman has two daughters and both of them are married. Due to the fear of virus, none of her relatives were ready to touch her body.

Meanwhile, Dr Premananda K of district health department reportedly sought help of the activists of Popular Front of India (PFI). 

Under the supervision of PFI’s medical wing in-charge Muneer Kalmadi, the body was shifted to the district hospital with all necessary precautionary measures.