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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 NGL C3 ENT/C3 NWE NGL N. America/Europe – Commodity Differential CFD

C3 ENT/C3 NWE NGL N. America/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name C3 ENT/C3 NWE(100mt-$/mt)
MT5 Code C3_ENT/C3_NWE
Contract Classification Commodity Differential CFD
Geographical Region N. America/Europe

Contract Specification

Sector Energy
Product Group NGL
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 contract enables market participants to:

  • Trade the price spread between US Mont Belvieu propane (Enterprise) and Northwest European (NWE) propane directly.
  • Hedge exposure to transatlantic arbitrage opportunities between North American and European propane markets.
  • Manage risks linked to regional supply-demand imbalances, shipping costs, and export/import economics.
  • Implement strategies based on shifting fundamentals, such as US shale production trends, European demand cycles, and global trade flows.

Market Significance
Transatlantic Benchmark: The C3 ENT/C3 NWE spread is a critical indicator for global LPG traders, reflecting the economics of moving propane from the US Gulf Coast to Europe. The spread is influenced by US export capacity, European heating demand, and freight market volatility.
Arbitrage Driver: The spread determines the viability of US-to-Europe propane shipments. A widening spread often signals profitable arbitrage, incentivising exports, while a narrow spread may indicate oversupply or weak demand.
Price Dynamics: The relationship between Mont Belvieu (the largest US NGL hub) and NWE propane prices captures regional inventory trends, seasonal demand shifts, and geopolitical factors affecting transatlantic trade.

Trading Benefits

  • Spread Trading Efficiency: Execute US-Europe propane arbitrage strategies with a single contract, avoiding the complexity of managing separate positions.
  • Risk Mitigation: Hedge against price volatility caused by regional disruptions, such as US production outages or European import bottlenecks.
  • Capital Efficiency: Lower margin requirements compared to trading outright positions in both benchmarks.
  • Market Insight: Gain exposure to the interplay between US shale-driven supply and European demand, a key driver of global propane trade.

Target Users
This contract is vital for:

  • LPG exporters/importers managing transatlantic shipments.
  • Trading firms capitalising on arbitrage opportunities.
  • Petrochemical producers securing feedstock cost stability.
  • Financial institutions seeking exposure to energy market spreads.

By providing a direct link between Mont Belvieu and NWE propane prices, this contract supports informed decision-making for participants navigating the volatile and interconnected global LPG markets.