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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/Barges 0.5 Fuel Oil Asia – Commodity Differential Spread Bet

Sing 0.5/Barges 0.5 Fuel Oil Asia – Commodity Differential Spread Bet

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Name & Trade Code

Contract Name Sing 0.5/Barges 0.5($/0.01)
MT5 Code 0.5_E/W.s
Contract Classification Commodity Differential SB
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
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 European Barges 0.5% VLSFO directly
  • Hedge exposure to inter-regional price differences in compliant marine fuels
  • Manage risks associated with physical VLSFO cargoes moving between Asian and European markets
  • Implement arbitrage strategies between these two key global marine fuel hubs

Market Significance

Regional Price Indicator: Provides a transparent benchmark for the price differential between Asian and European VLSFO markets

Shipping Economics Barometer: Reflects the economics of bunker fuel procurement across different global regions

IMO 2020 Compliance Tool: Captures regional differences in the availability and pricing of regulation-compliant marine fuels

Trading Benefits

  • Inter-Regional Spread Trading: Enables direct trading of the VLSFO price difference without holding separate positions in each market
  • Risk Management: Offers an efficient hedge for bunker suppliers, shipping companies and traders operating across both regions
  • Price Discovery: Facilitates transparent valuation of VLSFO arbitrage opportunities between Asia and Europe
  • Capital Efficiency: Reduces margin requirments compared to trading outright positions in both markets

This contract is particularly valuable for shipping companies managing global bunker fuel costs, marine fuel suppliers operating across multiple regions, and commodity traders seeking to capitalize on regional price dislocations in the VLSFO market. It provides a focused instrument to manage regulatory compliance costs while optimising fuel procurement strategies across the world’s major shipping lanes.