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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 0.5/380 Fuel Oil Asia – Commodity Differential CFD

Sing 0.5/380 Fuel Oil Asia – Commodity Differential CFD

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Name & Trade Code

Contract Name Sing 0.5/380(100mt-$/mt)
MT5 Code Sg0.5/Sg_380
Contract Classification Commodity Differential CFD
Geographical Region Asia

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 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 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 price spread between Singapore 0.5% VLSFO and Singapore 380 cst fuel oil (the “Sing High Five”) directly
  • Hedge the premium of IMO 2020-compliant marine fuel over traditional high-sulfur fuel oil
  • Manage exposure to both low-sulphur and high-sulphur fuel oil markets in Asia
  • Implement trading strategies around environmental regulations and scrubber economics

Market Significance

Regulatory Impact Gauge: Provides a direct measure of the cost differential between IMO 2020-compliant and non-compliant marine fuels

Scrubber Investment Indicator: Reflects the economic value of installing exhaust gas cleaning systems (scrubbers) on vessels

Asian Marine Fuel Benchmark: Captures a key pricing relationship in the world’s largest bunkering hub

Trading Benefits

  • Spread Trading Efficiency: Enables trading the VLSFO-HSFO spread without managing separate positions in both products
  • Risk Management: Offers an efficient tool for hedging exposure to changing sulfur premium values
  • Capital Efficiency: Reduces margin requirements compared to trading outright positions in both fuels
  • Regulatory Compliance Strategy: Helps shipping companies optimise their approach to sulfur regulations

This contract is particularly valuable for shipping companies evaluating fuel choices, refineries balancing production of high and low sulphur fuel oil, bunker suppliers managing inventory costs, and traders implementing strategies around IMO 2020 compliance. It provides a focused instrument to manage and capitalise on one of the most significant price spreads in the modern marine fuel market.