IndianOil Seeks Forward Markets Commission's Approval to Hedge Refinery Margins
Posted on: Friday, 14 November 2008, 06:00 CST
IndianOil has asked the Forward Markets Commission to allow the company to hedge its refinery margins and end products such as petrol and diesel.
The company said that it is also holding talks with the Multi-Commodity Exchange (MCX) to provide it with a platform to hedge refinery margins and end products. At present, MCX provides a platform to oil exploration and marketing companies to hedge volumes for crude oil only.
According to IndianOil, it has so far hedged anywhere between five and 10 million barrels of crude oil in 2007-08. It imports about 260 million barrels and it hedges less than 5% of the same.
SV Narasimhan, director of finance at IndianOil, said: "The market has been very unstable in the past few months and thus we are not very aggressive on hedging. We are waiting for oil prices to stabilize and then we may take a position."
Source: Datamonitor
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