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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 CP NGL N. America/Middle East – Commodity Differential CFD

C3 ENT/C3 CP NGL N. America/Middle East – Commodity Differential CFD

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Name & Trade Code

Contract Name C3 ENT/C3 CP(100mt-$/mt)
MT5 Code C3_ENT/C3_CP
Contract Classification Commodity Differential CFD
Geographical Region N. America/Middle East

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 Middle Eastern propane priced on the Saudi Contract Price (CP) directly.
  • Hedge exposure to the differential between North American and Middle Eastern propane markets.
  • Manage risk associated with fluctuations in regional supply, demand, shipping costs, and export economics.
  • Implement trading strategies that reflect the shifting value of propane between the US and Middle East, influenced by factors such as seasonal demand, inventory levels, and freight rates.

Market Significance

Inter-Regional Benchmark:
The C3 ENT/C3 CP spread is a vital indicator for global LPG and NGL traders, reflecting the economics of moving propane between North America and the Middle East. The spread is shaped by US production and export capacity, Middle Eastern contract pricing, and global shipping market conditions.

Arbitrage and Trade Flows:
This contract is central for assessing the viability of propane exports and imports between these two major producing regions. A wide spread often signals profitable arbitrage opportunities, encouraging transregional cargo flows. Conversely, a narrow or negative spread can indicate limited export incentives or high shipping costs.

Market Dynamics Insight:
The price relationship between Mont Belvieu Enterprise and Saudi CP propane is influenced by inventory trends, weather-driven demand, infrastructure developments, and global trade patterns. The US and Middle East are the world’s largest NGL producers and exporters, making this spread a key barometer for global LPG trade.

Trading Benefits

  • Spread Trading Efficiency: Enables direct trading of the US–Middle East propane spread without holding outright positions in both markets.
  • Risk Management: Offers an effective hedge for exporters, importers, and traders exposed to interregional price swings and arbitrage opportunities.
  • Price Discovery: Facilitates transparent valuation of the relative value between US and Middle Eastern propane, supporting informed trading and hedging decisions.
  • Capital Efficiency: Reduces margin requirements compared to trading both legs separately.

This contract is particularly valuable for LPG exporters, importers, trading houses, and petrochemical companies involved in the transatlantic and interregional NGL trade. It provides a focused tool for managing exposure to one of the most actively traded and closely watched price spreads in the global propane market.