Unemployment: Hurt by PM’s arrogant comment, educated youth protest with pakodas

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.

New Delhi, Feb 17: The Congress high command is likely to announce the party’s key troubleshooter in Karnataka, DK Shivakumar as the next state unit president with MB Patil as the working president, according to party leaders who spoke on condition of anonymity, in what could be a delicate balancing act between competing caste claims in the state..

Former CM S Siddaramaiah is likely to continue as the Congress Legislature Party leader, the leaders added.

The KPCC presidentship has been vacant ever since the incumbent Dinesh Gundu Rao resigned following the defeat in the bypolls, in which the ruling Bhartiya Janata Party (BJP) won 12 of the 15 seats, ensuring a majority for itself in the state assembly.

The state leadership issue became contentious following that, with Shivakumar, a Vokkaliga, lobbying to ensure that his role as party’s main go-to man during difficult times be rewarded, the leaders cited above said. Patil, a former home minister and a Lingayat leader, was the favoured choice of Siddaramaiah, they added.

A former minister in the Siddaramiah cabinet told HT on condition of anonymity the appointment was now “just a formality”.

“How long could the current uncertainty continue? Shivakumar is a go-getter who can also help generate funds for the party. For instance, on the Bidar school sedition issue, we were late and started an agitation only after the accused got bail. With Shivakumar at the helm, we will be more aggressive and able to put the BJP government on a mat by highlighting all their omissions and commissions,” the former minister added.

The decision to appoint Shivakumar -- a seven-term MLA who served in the cabinets of former CMs S Bangarappa, SM Krishna, Siddaramiah and HD Kumaraswamy -- is likely to be a controversial one. He faces ongoing income tax and Enforcement Directorate (ED) probes, is currently on bail after being jailed by the ED in a money laundering case. He

In his 2018 poll affidavit, Shivakumar declared assets worth Rs 840 crore, making him one of the richest politicians in the state. His brother DK Suresh is a two term parliamentarian and is the sitting MP from the Bangalore Rural constituency.

Shivakumar’s latest move to build the world’s largest Christ statue in his constituency in Kanakapura has also come in for severe attack from Sangh Parivar outfits, who claim the land he donated was government-owned and illegally usurped by him.

Political analyst Manjunath said that Shivakumar, if appointed, is likely to inject a great degree of dynamism into the functioning of the party.

“He sees himself as a future Chief Minister and is very ambitious. If the appointments are confirmed, it will only vindicate the fact that the party high command has tried to balance caste interests by having a Vokkilga, a Lingayat and a Kuruba – the three leading castes in the state - heading different parts of the party. Also since the BJP is making a concerted effort to break into the Vokkaliga votebank, nominating Shivakumar would be a smart move to consolidate the community behind the party,” he said.