The National Stock Exchange (NSE) will introduce a new crude oil futures contract linked to global benchmark prices starting April 13. This move aims to bolster India’s commodity derivatives market. The exchange will roll out Dated Brent Crude Oil (Platts) futures in its commodity derivatives segment following approval from the Securities and Exchange Board of India (SEBI).
The upcoming contract will be based on the S&P Global Energy (Platts) Dated Brent assessment, a widely recognized benchmark for tracking physical crude oil prices. Traded under the symbol BRCRUDEOIL, these contracts will be available on a monthly basis. Trading will occur from Monday to Friday between 9:00 am and 11:30 pm or 11:55 pm, depending on US daylight saving time.
The futures contracts will be cash-settled, eliminating the need for traders to handle physical crude oil delivery. The final settlement price will be determined using the monthly average of Platts Dated Brent prices. This value will be converted into Indian rupees based on the reference exchange rate published by the Reserve Bank of India (RBI).
NSE emphasized that the contract will adhere to quality standards set by S&P Global Energy (Platts), ensuring alignment with global market practices. By launching this initiative, the exchange aims to address the demand from Indian traders and companies seeking exposure to global crude oil prices. Previously, domestic participants often relied on alternative benchmarks or overseas exchanges to manage risks associated with international oil price fluctuations.
