Crude futures contract down 8%

Battered like other asset classes, the active crude oil futures contract on MCX breached the first lower circuit of 4% circuit and was later trading down 7.74% at Rs 1,788 a barrel intraday Monday, leading to massive losses for those long the commodity.

“The next supports kick in at Rs 1,587 and then Rs 1,300,” said Naveen Mathur, director, Anand Rathi.

“The margins to trade on the contract are above 40% so there is no client level default expected,” said Kishore Narne, associate director at Motilal Oswal Financial Services.


The circuits in crude are 4%, 6%, 9% and after a 15 minute cooling off at 12% and then 15%. Mathur said the exchanges have to inform market regulator Sebi if the 12% circuit is breached.