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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 3.5% Rdam Barges Crack Fuel Oil Europe – Commodity Differential CFD

3.5% Rdam Barges Crack Fuel Oil Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name 3.5% Rdam Barges Crack
MT5 Code Barges_3.5_Crk
Contract Classification Commodity Differential CFD
Geographical Region 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 bbl
Trading Price Quote $/bbl
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 Rotterdam Barges 3.5% Crack contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Fuel Oil 3.5% FOB Rotterdam Barges and Brent 1st Line crude oil futures.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Fuel Oil 3.5% FOB Rotterdam Barges and Brent crude oil
  • Speculate on refining margins for producing high-sulphur fuel oil from crude oil
  • Manage risk related to fuel oil and crude oil price fluctuations in the European market

Market Significance

  • Refining Margins: Reflects the economics of producing high-sulphur fuel oil from crude oil in the Northwest European market
  • IMO 2020 Impact: Provides insights into the value of high-sulphur fuel oil relative to crude oil in the post-IMO 2020 market environment
  • Regional Benchmark: Serves as a key reference for high-sulphur fuel oil pricing in relation to crude oil in Europe

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both European fuel oil and global crude oil markets
  • Risk Management: Allows hedging against price volatility in both fuel oil and crude oil markets
  • Spread Trading: Enables traders to capitalise on price differentials between refined products and crude oil

This contract is particularly valuable for refineries, shipping companies, trading houses, and financial institutions active in both the European fuel oil and global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between high-sulphur fuel oil and crude oil prices.