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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 Distillates CIF NWE Diesel/LSGO Distillates Europe – Commodity Differential CFD

CIF NWE Diesel/LSGO Distillates Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name CIF NWE Diesel/LSGO(100mt-$/mt)
MT5 Code CIF_NWE_Diesel/LSGO
Contract Classification Commodity Differential CFD
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Distillates
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 European diesel cargoes delivered CIF Northwest Europe (NWE) and European Low Sulphur Gasoil (LSGO).
  • Hedge exposure to the margin between diesel and gasoil, two of the most important middle distillate products in Europe.
  • Manage risk associated with shifts in supply, demand, and refining economics for these products.
  • Implement trading strategies that reflect the volatility and close relationship between diesel and gasoil prices in the European market.

Market Significance

Distillate Margin Benchmark:
This contract acts as a transparent tool for tracking and managing the profitability of producing diesel versus gasoil in Europe. The spread between CIF NWE diesel and LSGO is closely watched by refiners, traders, and importers as it impacts operational decisions and trading flows.

Physical and Financial Market Link:
CIF NWE diesel cargoes represent the delivered price of ultra-low sulphur diesel (10ppm) into Northwest Europe, a key import hub. LSGO is the standard pricing reference for distillate trading in Europe and is used as the settlement basis for many financial contracts.

Market Dynamics Insight:
The spread reflects changes in seasonal demand, refinery maintenance schedules, and supply disruptions, making it a vital indicator for the European energy market.

Trading Benefits

  • Margin Management: Allows refiners, traders, and importers to hedge or speculate on the diesel-gasoil spread with a single contract.
  • Efficient Risk Control: Directly addresses the risk of price movements between two closely linked distillate products.
  • Operational Flexibility: Supports both physical market hedging and speculative trading strategies.
  • Capital Efficiency: Reduces margin requirements compared to holding separate positions in both legs.

This contract is especially valuable for refiners, importers, and trading firms active in the European distillates market. It provides a focused tool for managing the spread between these two vital benchmarks, helping participants to stabilise margins and respond quickly to market changes.