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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% Sing Hi5 Fuel Oil Asia – Commodity Differential CFD

0.5% Sing Hi5 Fuel Oil Asia – Commodity Differential CFD

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Name & Trade Code

Contract Name 0.5% Sing Hi5
MT5 Code Sing_0.5_Hi5
Contract Classification Commodity Differential CFD
Geographical Region Asia

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
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 Singapore 0.5% “Hi5” 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 380 CST Singapore fuel oil.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between low-sulfur marine fuel and high-sulfur fuel oil in Singapore
  • Speculate on the impact of IMO 2020 regulations on fuel oil prices
  • Manage risk related to the adoption of scrubber technology in the shipping industry

Market Significance

  • IMO 2020 Impact: Reflects the price differential between compliant and non-compliant fuels under the International Maritime Organisation’s sulphur cap
  • Scrubber Economics: Provides insights into the financial viability of installing exhaust gas cleaning systems (scrubbers) on ships
  • Regional Fuel Dynamics: Captures the supply-demand balance for different fuel grades in the key bunkering hub of Singapore

Trading Benefits

  • Spread Risk Management: Allows traders to focus on the relative price movements between low-sulfur and high-sulfur fuel oils
  • Market Access: Provides exposure to both IMO 2020-compliant and non-compliant fuel markets in Singapore
  • Flexibility: Enables various trading strategies related to the marine fuel transition

This contract is particularly valuable for shipowners, bunker suppliers, refineries, and commodity traders active in the Asian marine fuel market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.