Clients long crude in dire straits as April crude settles at provisional Re 1

Punters long crude oil futures on MCX near month could lose their shirts after the May contract on Nymex, which it mirrors, collapsed to a negative $37.63 a barrel, reflecting the hit on demand due to Covid -induced lockdowns globally.

It also opens the possibility of defaults at client level, though clearing will move on seamlessly as brokers would have to make good their client deficits.

The MCX said in a circular that the due date rate for the April 20 contract would be a provisional Re 1. The last traded price of MCX at 5 pm was Rs 965 a barrel . After that crude front month on Nymex plumbed to negative rate.


The provisional rate will mean a loss of Rs 96,400 per barrel for those on Long side.