India is the world's third-biggest consumer of crude oil.
Multi Commodity Exchange (MCX) is set to launch the country's first crude oil options contract on May 15, the exchange said in a statement on Tuesday. Two contracts expiring on June 15 and July 17 with lot size of 100 barrel will be launched next week, the exchange said.
India is the world's third-biggest consumer of crude oil. Crude oil futures contracts were most traded on the exchange platform in 2017/18 fiscal year ended on March 31.
The option contract will provide the physical market participants an additional tool to hedge their risk, said Mrugank Paranjape, managing director of MCX.
The markets regulator Securities and Exchange Board of India (SEBI) has approved the options contract last week, the exchange added. Recently, global oil prices had surged close to 3.5-year peaks on simmering Mideast tensions and keen US demand, while London stocks rose with drugmaker Shire boosted by a reported takeover move. Because of the global oil price hike, the prices in India also rose, jumping to 55-month high.
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