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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Onyx Markets Fuel Oil 0.5% EW Fuel Oil Asia/Europe – Commodity Differential CFD

0.5% EW Fuel Oil Asia/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name 0.5% EW
MT5 Code E/W_0.5
Contract Classification Commodity Differential CFD
Geographical Region Asia/Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
Tenor Period Up to 24 consecutive forward Tenor Periods available
Maximum Forward Tenor Up to 24 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit mt
Trading Price Quote $/mt
Price Digits 2
Currency USD
Tick Value 1
Tick Size 0.01
Minimum Volume 1
Volume Steps [Lots] 0.01
Settlement Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.
Margins View document

Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 31 March 2025 for Mar 25 Tenor Period)
Last Trading Day (for new open positions) Five working days prior to the Contract Expiry Date for the Tenor Period (i.e. 24 March 2025 for Mar 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period

Tenor Period Settlement Valuation Process

Open Volume The net open volume for the expiring Tenor Period
Daily Settlement Value Market-on-Close – The daily settlement assessment time, e.g. 4:30 pm for European contracts
Daily Settlement Volume Each day during Tenor Period, the remaining Open Volume reduces by the equivalent of 1/ (number of pricing days in the Tenor Period, including today if prior to Market-on-Close) and be settled at Daily Settlement Value
Final Settlement Price Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.
MOC Haircut

The East West 0.5% contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Singapore and Marine Fuel 0.5% FOB Rotterdam Barges.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Marine Fuel 0.5% in Singapore and Rotterdam
  • Speculate on regional price differentials between Asian and European marine fuel markets
  • Manage risk related to arbitrage opportunities between Singapore and Rotterdam marine fuel markets

Market Significance

  • Regional Benchmarks: Reflects the relationship between key marine fuel benchmarks in Asia and Europe
  • Arbitrage Opportunities: Captures potential price discrepancies between two major marine fuel trading hubs
  • IMO 2020 Impact: Provides insights into the global supply-demand dynamics of low-sulphur marine fuels post-implementation of IMO 2020 regulations

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both Asian and European marine fuel markets
  • Risk Management: Allows hedging against price volatility between different regional marine fuel benchmarks
  • Spread Trading: Enables traders to capitalise on price differentials between Singapore and Rotterdam marine fuel markets

This contract is particularly valuable for shipowners, bunker fuel suppliers, refineries, and commodity traders active in the global marine fuel market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between marine fuel prices in different regions.