Crude oil volumes on the MCX platform touched a record level of 10.19 million barrels on Wednesday because of increased participation from investors amid high volatility in global crude prices.
"Crude oil volumes on the MCX are 10 per cent that of the New York Mercantile Exchange. Volumes stood at the highest on Wednesday because of a sudden rise in investors' participation," Karvy Comtrade Research Head Harish G told PTI.
Soaring crude oil prices are attracting equity investors to the commodity market, he said, adding that with prices topping record level of 135 dollars per barrel, investors are taking keen interest in crude oil futures.
On May 28, volumes in June contract touched 10.19 million barrels, the highest since the launch of the contract. It recorded a business of Rs 5,588.25 crore (Rs 55.88 billion).
Although, there was a sharp fall in crude oil prices on Wednesday, but volumes remained upbeat, experts said, adding that prices were below $130 per barrel.
Participation from big petroleum giants like Bharat Petroleum Corporation and Hindustan Petroleum Corporation, and also from aviation firms like Jet Airways could further increase MCX volumes, they added.
"As there has been high volatility in crude oil prices, companies can use futures market platform to lock in price risk well in advance," Harish said, adding that volumes might shoot up another 20 per cent with corporate participation.
Increased awareness is pulling many investors to crude oil futures trading, he added.
