INSUBCONTINENT EXCLUSIVE:
Kolkata: Multi Commodity Exchange of India Ltd
(MCX) on Tuesday commenced options trading in crude oil contract
The contract has witnessed traded volume of 2058 lots with value of Rs 101.67 crore, as of 05:30 pm today.
The exchange has currently
launched June and July 2018 option contracts in crude oil, with one MCX crude oil futures contract (100 barrel) as the underlying
On its expiry, if exercised, the open position shall devolve into the respective underlying futures position
This new options contract alongside the popular crude oil and crude mini (10 barrel) futures contracts will benefit the crude oil
stakeholders, providing them with an efficient solution to hedge against unfavourable price movements in the global crude oil markets
This options contract is available for trading on MCX from 10:00am to 11:30pm /11:55 pm.
In order to encourage active participation in the
market the exchange is not levying any transaction fees on the commodity options contracts including crude oil till September 30,
2018.
Speaking on the launch, Mr
Mrugank Paranjape, MD CEO, MCX said, "We're delighted with the successful launch of our options contract in crude oil
We are keen to ensure that our product portfolio has the diversity necessary to service a wide spectrum of commodity stakeholders
The new crude oil options contract will further strengthen our crude product basket while offering immense value to its stakeholders who are
There is already a tremendous amount of interest as we see today from the market participants to hedge in this new product given the recent
trends in global geopolitics and volatility in crude oil
After refining, crude oil can be made into a variety of products such as fuel oil, petrol and diesel
In FY17, oil production in India reached 36 million metric tonnes (MMT) as compared to 36.94 MMT in FY16
In FY18, up to October 2017, oil production stood at 21.06 million metric tonnes
As of 2016, the country had 600 million metric tonnes of proven oil reserves
In FY17, total crude oil imports were valued at USD 80.3 billion as compared to USD70 billion in FY16
In FY18, up to October 2017, crude oil Imports stood at 2.52 million barrels per day.
