Crude futures volume on MCX doubles to 5.2 million barrels a day
20 Nov 2007
Mumbai: The average daily volume of crude oil futures on the Multi Commodity Exchange (MCX) of India has more than doubled to 5.2 million barrels by October 31 this year, from 2.5 million barrels in fiscal ''05, exchange sources said.
The volume in crude oil contracts on MCX reached an all-time high of 11-million barrels with open interest of 2.14 million barrels on November 1. MCX has an over 95 per cent market share in the country as far as energy trading is concerned.
With crude oil trading at a record high, investors'' interest in the commodity in the domestic market has also increased substantially
"The average daily open interest for 2005 was approximately 1.3 million barrels, which has increased to over 1.6 million barrels in 2007. This is an indication of increased participation in the crude oil futures wherein all types of participants take positions to take advantage of the volatility in crude oil prices," MCX''s deputy managing director Joseph Massey said.
Crude oil contracts on MCX rose to Rs323.60-crore as of November 16. Volumes were 8,94,200 barrels and open interest at 10,70,700 barrels. Crude oil December contract was up 1.65 per cent at Rs3,633 per barrel.
All MCX crude oil contracts registered a turnover of Rs10,561.09-crore during the week ended November 16. Open interest was 1,129,500 barrels and total volume 28,893,000 barrels during the week.
As crude oil approaches the USD 100-a-barrel mark in international markets, Petroleum Secretary M S Srinivasan had suggested halting trading of the fuel on commodity exchanges.
Srinivasan attributed the "enormously" high prices of crude oil to trading in the New York Mercantile Exchange.
