Oil prices fall as US-China tensions offset coronavirus hope

News Network
May 6, 2020

Singapore, May 6: Oil prices slipped back Wednesday after two days of gains, although Brent crude remained above $30 a barrel, as renewed US-China tensions offset optimism about the easing of coronavirus lockdowns.

Brent, the international benchmark, fell 1.1 per cent to $30.63 a barrel in early Asian trade. On Tuesday, the contract surged 14 per cent and rose above $30 for the first time since mid-April.

US marker West Texas Intermediate slipped 1.9 per cent and was changing hands for $24.13 a barrel.

Oil markets have been battered as the virus strangled demand due to business closures and travel restrictions, with US crude falling into negative territory last month for the first time.

They started rallying strongly this week as countries from Europe to Asia ease curbs and economies start shuddering back to life.

But gains were capped Wednesday as dealers follow a brewing US-China row after Donald Trump hit out at Beijing over its handling of the outbreak, saying it began in a Wuhan lab, but so far offering no evidence.

"Traders are incredibly cautious this morning, weighing all the possible China responses," said Stephen Innes, chief global market strategist at AxiCorp.

"And the one that would hurt the most would be for China to reduce imports of US oil."

This week's rally was in part driven by a deal agreed between top producers to reduce output by almost 10 million barrels a day, which came into effect on May 1.

There have also been signs that the massive oversupply in the market is starting to ease as demand slowly comes back.

Energy data provider Genscape said earlier this week that stockpiles at the main US oil depot in Cushing, Oklahoma had increased by only 1.8 million barrels last week following weeks of major rises.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 7,2020

Washington, Jul 7: US Secretary of State Mike Pompeo on Monday (local time) confirmed that the White House is "looking at" banning the Chinese social media apps including TikTok.

"With respect to Chinese apps on people's cell phones, I can assure you the United States will get this one right too. I don't want to get out in front of the President [Donald Trump], but it's something we're looking at," Pompeo was quoted by CNN during an interview with Fox News.

He said people should only download the app, "if you want your private information in the hands of the Chinese Communist Party."

Responding to his comments, a TikTok spokesperson said, "TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product and public policy here in the US."

"We have no higher priority than promoting a safe and secure app experience for our users.  We have never provided user data to the Chinese government, nor would we do so if asked," the spokesperson added.

The US politicians have repeatedly criticised TikTok, owned by Beijing-based startup ByteDance, of being a threat to national security because of its ties to China.

Recently, India banned 59 Chinese apps including TikTok following a violent standoff with Chinese troops. This move was lauded by the US officials.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 11,2020

Geneva, Jul 11: The World Health Organization said Friday that it is still possible to bring coronavirus outbreaks under control, even though case numbers have more than doubled in the past six weeks.

WHO chief Tedros Adhanom Ghebreyesus said the examples of Italy, Spain, South Korea and India's biggest slum showed that however bad a outbreak was, the virus could still be reined in through aggressive action.

"In the last six weeks cases have more than doubled," Tedros told a virtual press conference in Geneva.

However, "there are many examples from around the world that have shown that even if the outbreak is very intense, it can still be brought back under control," said Tedros.

"And some of these examples are Italy, Spain and South Korea, and even in Dharavi -- a densely packed area in the megacity of Mumbai -- a strong focus on community engagement and the basics of testing, tracing, isolating and treating all those that are sick is key to breaking the chains of transmission and suppressing the virus."

The novel coronavirus has killed at least 555,000 people worldwide since the outbreak emerged in China last December, according to a tally from official sources compiled by AFP on Friday.

Nearly 12.3 million cases have been registered in 196 countries and territories.

"Across all walks of life, we are all being tested to the limit," Tedros said, "from countries where there is exponential growth, to places that are loosening restrictions and now starting to see cases rise.

"Only aggressive action combined with national unity and global solidarity can turn this pandemic around."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 15,2020

Stockholm, Jun 15: Nuclear powers continue to modernise their arsenals, researchers said Monday, warning that tensions were rising and the outlook for arms control was "bleak".

"The loss of key channels of communication between Russia and the USA... could potentially lead to a new nuclear arms race," said Shannon Kile, director of the nuclear arms control programme at the Stockholm International Peace Research Institute (SIPRI) and co-author of the report.

Russia and the US account for more than 90 percent of the world's nuclear weapons.

Kile was referring to the future of the New START treaty between the US and Russia, which is set to expire in February 2021.

It is the final nuclear deal still in force between the two superpowers, aimed at maintaining their nuclear arsenals below Cold War levels.

"Discussions to extend New START or to negotiate a new treaty made no progress in 2019," the SIPRI researchers noted.

At the same time, nuclear powers continue to modernise their weapons while China and India are increasing the size of their arsenals.

"China is in the middle of a significant modernisation of its nuclear arsenal. It is developing a so-called nuclear triad for the first time, made up of new land- and sea-based missiles and nuclear-capable aircraft," SIPRI said.

The country has repeatedly rejected Washington's insistence that it join any future nuclear arms reduction talks.

The number of nuclear warheads declined in the past year.

At the start of 2020, the United States, Russia, Britain, China, India, Pakistan, Israel and North Korea together had 13,400 nuclear arms, according to SIPRI's estimates, 465 fewer than at the start of 2019.

The decline was attributed mainly to the United States and Russia.

While the future of the New START treaty remains uncertain, Washington and Moscow have continued to respect their obligations under the accord.

"In 2019, the forces of both countries remained below the limits specified by the treaty," the report said. But both nations "have extensive and expensive programmes underway to replace and modernise their nuclear warheads, missile and aircraft delivery systems, and nuclear weapon production facilities," it added.

"Both countries have also given new or expanded roles to nuclear weapons in their military plans and doctrines, which marks a significant reversal of the post-Cold War trend towards the gradual marginalisation of nuclear weapons."

The Treaty on the Non-Proliferation of Nuclear Weapons (NPT), a cornerstone of the global nuclear non-proliferation regime, celebrates its 50th anniversary this year.

The number of nuclear arms worldwide has declined since hitting a peak of almost 70,000 in the mid-1980s.

The five original nuclear powers -- Washington, Beijing, Moscow, Paris and London -- in March reiterated their commitment to the treaty.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.