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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 Barges 0.5% Crack

Barges 0.5% Crack

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A CFD is a financial derivative that allows traders to speculate on the price movement of an asset without owning it. The trader enters into a contract with a broker, agreeing to exchange the difference in the asset's price from the time the contract is opened to when it is closed.

Name & Trade Code

Contract Name Barges 0.5 Crk(100bbl-$/bbl)
MT5 Code Bgs0.5_Crk
Contract Classification Commodity Differential CFD
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
Tenor Period Consecutive individual whole calendar months, e.g. Aug 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. 29 August 2025 for Aug 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. 22 August 2025 for Aug 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period
Trading Hours 8:00am - 5:30pm London time
Quoting Hours 8:00am - 6:00pm London time

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.

The Rotterdam Barges 0.5% Crack contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Rotterdam Barges and Brent 1st Line crude oil futures.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Marine Fuel 0.5% FOB Rotterdam Barges and Brent crude oil
  • Speculate on refining margins for producing low-sulphur marine fuel from crude oil
  • Manage risk related to IMO 2020 sulphur regulations in the shipping industry

Market Significance

  • Refining Margins: Reflects the economics of producing low-sulphur marine fuel from crude oil in the European market
  • IMO 2020 Impact: Captures the ongoing effects of the International Maritime Organization’s 2020 sulphur cap regulation
  • Regional Benchmark: Serves as a key reference for low-sulphur marine fuel pricing in relation to crude oil in Europe

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both European marine fuel and global crude oil markets
  • Risk Management: Allows hedging against price volatility in both marine fuel and crude oil markets
  • Spread Trading: Enables traders to capitalise on price differentials between refined products and crude oil

This contract is particularly valuable for refineries, shipping companies, bunker fuel suppliers, and commodity traders active in both the European marine fuel and global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.

A spread bet is a form of wagering on the price movement of an asset, where the trader bets on whether the price will rise or fall. The profit or loss is determined by the difference between the opening and closing prices.

Name & Trade Code

Contract Name Barges 0.5 Crk($/0.01)
MT5 Code Bgs0.5_Crk.s
Contract Classification Commodity Differential SB
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
Tenor Period Consecutive individual whole calendar months, e.g. Aug 25
Maximum Forward Tenor Up to 18 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit
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. 29 August 2025 for Aug 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. 22 August 2025 for Aug 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period
Trading Hours 8:00am - 5:30pm London time
Quoting Hours 8:00am - 6:00pm London time

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.

The Rotterdam Barges 0.55 Crack contract is a commodity Spread Bet (SB) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Rotterdam Barges and Brent 1st Line crude oil futures.

Contract Purpose

This commodity differential spread bet contract allows market participants to:

  • Gain exposure to the crack spread between 0.5% sulphur fuel oil in Rotterdam and crude oil
  • Hedge against price fluctuations in the European fuel oil market relative to crude oil
  • Speculate on the future price relationship between low sulphur fuel oil and crude oil

Market Significance

  • Refinery Economics: Reflects the profitability of producing low sulphur fuel oil from crude oil
  • Environmental Regulations: Indicates the impact of IMO 2020 sulphur regulations on fuel oil pricing
  • Regional Indicator: Provides insights into supply and demand dynamics for low sulphur fuel oil in Northwest Europe

Trading Benefits

  • Spread Trading: Offers a convenient way to trade the price differential between fuel oil and crude oil
  • Risk Management: Allows refineries and shipping companies to hedge their exposure to fuel oil crack spreads
  • Market Access: Provides exposure to a key European fuel oil benchmark through a standardised financial instrument

This contract is particularly valuable for refineries, shipping companies, trading houses, and financial institutions active in the European fuel oil market. It offers a tool for managing price risks and implementing trading strategies related to the 0.5% sulphur fuel oil crack spread in Rotterdam, with accessibility through the MT5 platform and cash settlement based on Platts and ICE assessments.

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