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.
The NIA had named Zakir Naik, IRF, and others in an FIR registered under anti-terror law Unlawful Activities (Prevention) Act on Friday.
Comments
It only shows that PROPHET MUHAMMED pbuh, the final messenger to the whole of MANKIND Spoke the TRUTH...
He said : In the end time LIES will be accepted as truth and TRUTH will be accepted as LIES. People are IGNORANT of the CREATOR that's why the EVILs find easy to trap the people With LIES and DECEPTION. ... Most of the people who doesnt use their intellect are falling to the LIES of the arrogant leaders.. and believing it as TRUTH... infact if we research what ZN says is all TRUTH and FACT from not only from Muslim scripture but also other religious scriptures.
But its a temporary enjoyment... for the falsehood... if not repented to God ... They will surely see that ALLAH's plan was the best. Muslims should be patience on their arrogance and fight lawfully.
But they plan, and Allah too plans. And Allah is the best of planners.
Who is the creator of this Univers and
the creator of you & me.
When people are busy in exchanging their old currencies, the Govt. is banning Dr.Zakir Naik's NGO and slowly taking over his Schools.
BJP needs place to hide their black money. So they are byforce taking over zakir's house to hide their money.
BJP needs place to hide their black money. So they are by force taking over zakir's house to hide their money.
shame on NIA who is acting on centre for their shameless ideology ...to curb a peace lover and a peace preacher ..... does it mean that every Muslim become TERRORIST instead of Peace lover like Dr.Zakir Naik ?
i think its time to become that soon . as INDIA will see bloodiest Civil War as RSS wishes to hold onto its 2025 Brahmin Rashtra agenda to come true (which is dream only) . but if ARMY is sasffronised only
Movement like Popular front, SPDI , komu souharda vedike .DYFI,SFI,CFI, Dalit Panthers, Naxal . pragathipara vedike will always there to defend the Nation from such foolish rulers ....
Jai Hind
Asaram Bapu and Zakir Naik both are same
Do you know how????
Their followers are telling that they are innocent and blaming government ...Ha ha ha
Dr. Zakir Naik is a student of Comparative religions. He preaches oneness of God, peace and harmony quoting verses from Quran, Bible and Vedas. Anti Islamic elements cannot equate him logically, and they cannot tolerate his popularity.
Targeting innocent Muslims or peaceful Muslim organizations is not at all a good step. Fascists with their biased policies will only harm the peace in the nation.
India being a plural society, Ruling parties or any other parties why dont you support the UNITY IN DIVERSITY towards the benefit of our beloved nation.
Good move by government...
I think this may be the one of reason for Demonetization of 500 and 1000 rupees, Saffron Government attacking A muslim daayi and his organization under the darkness of 500 and 1000 currency, Actually Muslim does not benefit much from Dr. Zakir as he is not a fiqh scholar, our non muslim brothers missed the opportunity to understand the truth through him, But nothing to worry, If Allah wish to guide one, No one can misguide him,
you can ban legend and great leader like DR.ZAKIR NAIK but you cannot stop or prevent spreading ISLAM all over the world. if you hold one DR.ZAKIR NAIK thousands of other DR. ZAKIR NAIK will come up with more powerful SPEECHES and awareness.
so stop doing unwanted activities and actions..
Dr Zakir should have come to India, since he is away from India authority has more chances of squeezing his organisations. if he is guilty court will punish him. it should not be the situation where he gave stick and ate beatings. Only Allah knows the truth and Allah will guide the best..
I DONT think he can do unwanted activities,
any way
Truth will prevail and evil will perish soon
Political Power is the Master key to open the doors of Justice. hope the Indian Muslim Community Stand together under one political Platform . then only can defeat the Fascist ideology. in india muslim's issue is not just the religious one, its full of Politics which Muslims never realized. let the community stand on their own. now the question is where are those champions of Secularism ..???
This is the lab test of communal anti India rss group. Now by false case they will start to ban other Islamic organization. They are planners are full training under Jews group.
Whole IndIan citizens aware of their intention devide and rule for the sake of so called upper case.
But God will by the supper of peace loving Indins it will not happen.
Now the young cm padnavi of rss more active with anti India policy.Hope hard woring Mumbaikar will stand with peacefull life.
Jai Hind!h3
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