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NEW DELHI, Feb 10 (Reuters): India's Multi Commodity Exchange launched the country's first energy futures contracts yesterday, hoping to attract oil firms and investors but refiners said they preferred a mechanism to protect refining margins.
Oil futures have not been very successful in Asia but officials from the Bombay-based exchange said they were enthused by the response.
"In the first hour of trading we saw a turnover of 60 million rupees ($1.37 million). This is very encouraging and it is bound to grow," Anjani Sinha, chief executive officer of the exchange, told reporters.
The exchange-which already offers futures trade in agri- commodities, bullion and metals-launched monthly contracts for light, sweet crude with trading lots of 100 barrels and hopes to add more energy products as trade picks up.
M.S. Ramachandran, the chairman of the country's largest refiner, Indian Oil Corp, said he welcomed the new contract but said Indian firms wanted instruments to lock refining margins.
Ramachandran said large Indian customers such as state transport firms, railways and the defence forces would also want to hedge the risk of fluctuating prices of refined products.
India is a key energy consumer as its economy grows and it looks to export value-added fuel products.
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