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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 Sing 0.5 Crk Fuel Oil Asia/Europe – Commodity Differential CFD

Sing 0.5 Crk Fuel Oil Asia/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name Sing 0.5 Crk(100bbl-$/bbl)
MT5 Code Sg0.5_Crk
Contract Classification Commodity Differential CFD
Geographical Region Asia/Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
Tenor Period Consecutive individual whole calendar months, e.g. May 25
Maximum Forward Tenor Up to 18 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 Download a summary or detailed document with tiers.

Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 30 May 2025 for May 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. 23 May 2025 for May 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 assessment settlement 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.

Contract Purpose

This differential contract allows market participants to:

  • Trade the “crack spread” between Singapore 0.5% Very Low Sulphur Fuel Oil (VLSFO) and Brent crude oil directly
  • Hedge refining margins for VLSFO production using European crude as feedstock
  • Manage exposure to both IMO-compliant marine fuel prices in Asia and crude oil price movements in Europe
  • Implement cross-regional trading strategies between Asian product markets and European crude supply

Market Significance

Refining Margin Benchmark: Provides a direct tool for tracking and manging the profitability of refining Brent crude into IMO 2020-compliant marine fuel

Regulatory Impact Gauge: Captures the economic effects of maritime emissions regulations on the fuel production value chain

Global Trade Relevance: Reflects the interconnectedness of European crude flows and Asian marine fuel demand, critical for shipping and refining sectors

Trading Benefits

  • Margin Management: Simplifies hedging or trading the VLSFO crack spread with a single contract
  • Cross-Market Access: Offers exposure to both Asian marine fuel and European crude markets in one instrument
  • Efficient Risk Control: Directly addresses the risk of price movements between crude input and IMO-compliant fuel output
  • Capital Efficiency: Reduces margin requirements compared to holding separate positions in both legs

This contract is particularly valuable for refiners producing VLSFO from European crude sources, shipping companies managing IMO-compliant bunker fuel costs, and trading firms implementing strategies around environmental regulation impacts. It provides a focused tool for managing the spread between these two vital benchmarks, supporting both operational hedging and speculative trading in the evolving marine fuels landscape.