Inventories at Cushing, the landlocked physical delivery point for WTI fell 3 million barrels last week, according to the EIA, easing concerns of limited storage capacity. Bloomberg
Inventories at Cushing, the landlocked physical delivery point for WTI fell 3 million barrels last week, according to the EIA, easing concerns of limited storage capacity. Bloomberg
Inventories at Cushing, the landlocked physical delivery point for WTI fell 3 million barrels last week, according to the EIA, easing concerns of limited storage capacity. Bloomberg
Inventories at Cushing, the landlocked physical delivery point for WTI fell 3 million barrels last week, according to the EIA, easing concerns of limited storage capacity. Bloomberg

US oil futures remain above $32 as fears of sub-zero plunge subside


Jennifer Gnana
  • English
  • Arabic

US crude futures hovered above $32 per barrel on Tuesday, ahead of the June contract expiry, allaying fears of the benchmark plunging below zero again.

West Texas Intermediate, the main US gauge, was up 1.79 per cent trading at $32.39 per barrel, while Brent, the international crude benchmark, was up 0.43 per cent at $34.96 per barrel at 4.29pm UAE time.

WTI's July and August contracts meanwhile traded at $31.84 per barrel and $32.39 per barrel.

Analysts remain optimistic with WTI's front-month contract up for expiry, a repeat of the benchmark's crash into sub-zero levels is unlikely.

US crude futures plummeted to as low as -$40 towards the expiry of the May contract last month, as storage capacity at the benchmark's physical delivery point, Cushing, Oklahoma neared saturation.

"With declining concerns of hitting tank tops, the likelihood of going below zero in the near term is close to zero," said Giovanni Staunovo, commodity analyst at Swiss bank UBS.

Inventories at the landlocked physical delivery point fell 3 million barrels last week, according to the US Energy Information Administration, easing concerns of storage capacity.

"Lower imports from Canada and likely more outflows towards the Gulf region (which has more storage capacity) but also falling US crude production have helped in seeing those inventory draws," said Mr Staunovo.

WTI's latest rally, which comes on the back of output cuts implemented by the oil exporting countries of Opec+ alliance and production shut-ins in North America, has narrowed the spread between the world's two most widely used benchmarks.

UBS expects the spread of Brent and WTI to average around $3 per barrel over the coming months.

"With the spread back around the fair level, a narrow spread could happen if US production falls much faster going forward and demand recovers quicker than we expect. A narrow spread would result in higher US crude imports and weigh on US crude exports," said Mr Staunovo.

Global equity markets also rallied yesterday as news of a possible vaccine lifted sentiments. The gradual easing of lockdown measures in several worst-hit parts of Europe such as Italy and Spain could boost the consumption of fuel as people take to the roads. Meanwhile, China- a major oil consumer - saw activity pick up as well.

"The fears about exhausted storage and an overflowing oil market made way to expectations about a soon ebbing of the supply glut. Travel activity and thus road fuel demand is recovering swiftly as countries ease lockdown measures," said Norbert Rücker, head economics and next generation research at Julius Baer

"China, the first country sucked into and reeling out of the corona crisis, is experiencing excessive traffic congestion again, in part because public mass transport remains out of favour," he added.

Global energy organisations have softened their outlooks for demand drop in 2020. The IEA revised its annual demand forecast up by 700,000 barrels per day, bringing the decline to 8.6 million bpd. The IEA had previously forecast a decline of 9.3m bpd for 2020.

Indoor cricket in a nutshell

Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side

8 There are eight players per team

There have been nine Indoor Cricket World Cups for men. Australia have won every one.

5 Five runs are deducted from the score when a wickets falls

Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs

B Side nets, between the striker and halfway down the pitch: 1 run

Side nets between halfway and the bowlers end: 2 runs

Back net: 4 runs on the bounce, 6 runs on the full

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

While you're here

The Florida Project

Director: Sean Baker

Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe

Four stars

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz