Following the controversy over the Multi Commodity Exchange (MCX) settling the April contract for crude oil in negative territory, several traders have shifted their positions from petroleum to natural gas. When the last month’s contract expired on April 20, the share of crude oil in the exchange’s turnover was 29.4 per cent, while that of natural gas was 6 per cent. This has now changed significantly in favour of gas.
According to the MCX data, natural gas’ share in the total volume of the exchange has almost tripled; the crude oil share has shrunk by more than half. Many big brokers have discontinued trading in crude oil after the MCX settled the price of the April contract at –Rs 2,884 per barrel, against the official close of Rs 995.
