Mixed trends in crude futures open interest

National Commodity & Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) today witnessed contrasting pictures in open interest for crude oil futures.

While NCDEX saw an unexpected jump on the back of rising open interest in energy futures on New York Mercantile Exchange (NYMEX), open interest for crude oil on MCX, in contrast, dropped a significant 23 per cent to 3,63,200 contracts from the historical high of 4,80,100 contracts just a few days ago, on July 28.

On NYMEX, open interest hit an all-time high of 1,109,838 contracts on Tuesday, breaking the previous record of 1,108,068 contracts on May 11.

In New York, the increase in open interest helped traders with long positions to strengthen their positions further as the crude oil price was breaching the record level of $75 a barrel.

The August futures on NCDEX started with nil open interest on May 17, while MCX saw a meagre 600 contracts at the launch of the contract.

Crude oil prices worldwide are spiralling on account of the ongoing geopolitical tensions in West Asia, Iran's continuation of its uranium enrichment programme in defiance of the UN directives, militant attacks on pipelines and flow stations in Nigeria and fears of supply disruption caused by anticipated tropical storm near the Caribbean islands.

However, crude oil prices today slipped a marginal 1.5 per cent to close at Rs 3,505 a barrel on MCX and at Rs 3,554 a barrel on NCDEX.

Incidentally, open interest in the West Texas Intermediate crude futures, listed on London's Intercontinental Exchange, also hit a record level at 283,048 contracts.

US light crude oil for September delivery today rose 90c to settle at $75.81 a barrel following a weekly inventory report in which the Energy Information Administration said crude supplies had fallen by 1.8m barrels.

Most analysts hinted a decline of around 700,000 barrels. Gasoline supplies too fell by 100,000 barrels, while distillates "� used in making heating and diesel fuel "� rose by 700,000 barrels, the report said.