MCX creates history of sorts, settles April crude oil contract in negative

Chances of huge defaults by investors, many of whom are retail traders gone long; On Nymex, there were actual trades in minus in which sellers were actually paying buyers to lift stocks

Toeing a 300 per cent fall in WTI crude oil, which plunged to -$37.63 a barrel on the New York Mercantile Index (Nymex) on Monday, the Multi Commodity Index (MCX) on Tuesday settled April expiry at -Rs 2,884 per barrel. It was for the first time that the price of the commodity settled in negative territory in India.

This could lead to defaults by many investors, largely retail traders who had taken long positions. The negative price and that too without trading irked brokers, who will have to come good even if their clients default. There were 11,500 open interest lots.