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
Narrow minded Mr. Shetty, in gulf countries somany Hindu girls are working under Arabs/Muslims for the sake of money. Why don't you term them condition to work under Hindus in India.
need job in muslim firm in ramdhan time many hindu womens weariing burka and coming to collect zakat money are you bother about tiz know because need money what a joke ramesh shetty
For your kind information most of all muslim firm many hindu relgious girls working and aslo many bachelore hindu girls working in gulf country tiz is allowed ,what you called for tiz love jihad or love jihd in gulf country shame on you uncultred people....
Rakesh Shetty : people like you are called narrow minded..... Grow up.
i dont understand why people like Rakesh Shetty are so much worried about popularity of Islam.
if they can track who is visiting whom in the locality, I wonder why these goons didnt reach sister Bhavani's house, who died at Janavasati Colony in Puttur taluk’s Vidyapur , and not a single saviour of hindu religion came forward to cremate her.
i wish these goons help their own hindu Koraga families living in shambles in Kulshekar.
And hope the police exhibit same proactiveness to stop moral.policing, drug menace, rapes and control law and order in the district.
looks like police dept is only interested in supporting moral.policing and protecting cows
Non-sence statement given by One Mr. Rakesh Shetty. Why that one sided policy? There are many cases of "Kesari Jihad" by the Saffronists in the recent days. Open your narrow-mindedness before you give such statement.
ಶ್ರೀಯುತ ಶೆಟ್ಟಿಯವರೆ,
ಇಸ್ಲಾಂ ಸೃಷ್ಟಿಕರ್ತನ ಧರ್ಮ. ಈ ವಿಶ್ವವನ್ನು ಸೃಷ್ಟಿಸಿದ ಏಕೈಕ ಜಗದೊಡೆಯನನ್ನು ಆರಾಧಿಸುವುದು ಮಾತ್ರವಾಗಿದೆ ಇಸ್ಲಾಂ ಕಲ್ಫಿಸುವುದು. ಅದಲ್ಲದೆ ತಾವೇ ಸ್ವತಃ ನಿರ್ಮಿಸಿದವುಗಳನ್ನು ಪೂಜಿಸುವ ಗತಿಗೇಡು ಮುಸ್ಲಿಮರಿಗಿಲ್ಲ. ಯಾರಾದರೂ ಹಾಗೆ ಮಾಡಿದರೆ (ಶಿರ್ಕ್ ಮಾಡಿದರೆ) ಧಾರ್ಮಿಕವಾಗಿ ಅವರು ಮುಸ್ಲಿಮರೂ ಅಲ್ಲ. ಇನ್ನು ಬಲತ್ಕಾರದಿಂದ, ಹಣದಾಸೆಯಿಂದ ಯಾರನ್ನಾದರೂ ಹಿಡಿದು ಧರ್ಮವನ್ನು ಅವರ ಮೇಲೆ ಹೇರುವ ಗತಿಗೇಡು ಮುಸ್ಲಿಮರು ಮಾಡಿಲ್ಲ, ಮಾಡುವುದೂ ಇಲ್ಲ. ಈ ಧರ್ಮದ ಸುಂದರ ಆಶಯವನ್ನು ಕಂಡು ಆಕರ್ಷಿತರಾಗಿ ಜನರು ಇಸ್ಲಾಮನ್ನು ಸ್ವೀಕರಿಸುತ್ತಾರೆಯೇ ಹೊರತು, ಮುಸ್ಲಿಮರನ್ನು ಕಂಡಲ್ಲ. ಅಲ್ಲಾಹನು ತಾನು ಉದ್ದೇಶಿಸುವವರನ್ನು ಸನ್ಮಾರ್ಗದಲ್ಲಿ ನಡೆಸುತ್ತಾನೆ. ಆದ್ದರಿಂದ ನೀವು ದಯವಿಟ್ಟು ಖುರ್ ಆನನ್ನು ಕಲಿಯಿರಿ.
ಇಸ್ಲಾಂ ಇಹಲೋಕ ಜೀವನ ಮತ್ತು ಮುಸ್ಲಿಮರ ಜನಸಂಖ್ಯೆಗೆ ಯಾವುದೇ ಪ್ರಾಶಸ್ತ್ಯ ನೀಡುವುದಿಲ್ಲ. ಬದಲಾಗಿ ಪಾರತ್ರಿಕ ಜೀವನದ ವಿಜಯವೇ ಅದರ ಉದ್ದೇಶ. ಅಲ್ಲಿ ವಿಜಯಶಾಲಿಯಾಗಬೇಕಾದರೆ ನಮ್ಮೆಲ್ಲರನ್ನು ಸೃಷ್ಟಿಸಿದ ಆ ಅಲ್ಲಾಹನ್ನು ಮಾತ್ರ ಆರಾಧಿಸಬೇಕು. ಇದರಲ್ಲಿ ವ್ಯರ್ಥವಾಗಿ ತರ್ಕಿಸಿ ಯಾವುದೇ ಫಲವಿಲ್ಲ.
This is a case of Love jihad, Great Job by Bajrang Dal. we dont have any problem if muslims girls visit our houses. but we condemn hindu Girls visiting Muslim houses. Muslims will do Taqiya to convert hindus by hook or crook,
Add new comment