The Securities and Exchange Board of India (SEBI) is reported to be in the final stages to permit futures trading in petrol and diesel—Indian Commodity Exchange Ltd (ICX) has urged SEBI to allow it to trade in futures contracts for petrol and diesel. As it is, futures trading is allowed in crude oil. Petrol and diesel are, among others, the two major refinery products derived from crude oil. Hence, crude oil futures contract currently serves as a proxy for hedging in both petrol and diesel.
This is not all. In the US, the world’s leading and most diverse derivatives marketplace, the CME Group comprising four exchanges—CME, CBOT, NYMEX and COMEX—offers the widest range of global benchmark products across all major asset classes. Its energy markets fuel almost all the world’s leading economies, and impact nearly every nation, including India, which is one of the world’s largest importers of crude oil and petroleum products. Futures and options on crude oil, refined products, natural gas, power, biofuels and coal at NYMEX help industry members and everyday investors in India to manage their price risk on imports and distribution of both crude oil and petroleum products like petrol and diesel. In the US, there are as many as 10 oil producing and distributing companies—British Petroleum, Chevron, ConocoPhillips, Exxon Mobil, Occidental Petroleum, Shell Oil, Anadarko Petroleum, Apache Corporation, XTO Energy and Amerada Hess. Read more
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