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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 FEI/C3 CP NGL Asia/Middle East – Commodity Differential CFD

C3 FEI/C3 CP NGL Asia/Middle East – Commodity Differential CFD

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Name & Trade Code

Contract Name C3 FEI/C3 CP(100mt-$/mt)
MT5 Code C3_FEI/C3_CP
Contract Classification Commodity Differential CFD
Geographical Region Asia/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 Far East Index (FEI) propane and Saudi Contract Price (CP) propane directly.
  • Hedge exposure to the differential between Asian spot propane prices and Middle Eastern contract prices.
  • Manage risk associated with fluctuations in regional supply, demand, and shipping economics across Asia and the Middle East.
  • Implement trading strategies that reflect the shifting value of propane between these two major benchmarks, driven by market fundamentals and contract negotiations.

Market Significance

Regional Benchmark Relationship:
The C3 FEI/C3 CP spread is a crucial indicator for the LPG and NGL markets, capturing the price dynamics between Far East spot propane (widely used in Asia) and the Saudi CP (the key contract price for Middle Eastern exports). This spread reflects the balance between spot market demand in Asia and long-term contract pricing from the Middle East.

Arbitrage and Trade Flows:
This contract is central for traders and importers assessing the economics of sourcing propane under different pricing mechanisms. A wide spread may indicate strong spot demand or tightness in Asia, while a narrow or negative spread can signal weak demand or ample supply.

Market Dynamics Insight:
The price relationship between FEI and CP propane is shaped by seasonal consumption patterns, regional inventory levels, supply disruptions, and broader global energy trends. The spread is closely watched by petrochemical producers, traders, and importers throughout Asia and the Middle East.

Trading Benefits

  • Spread Trading Efficiency: Enables direct trading of the FEI–CP propane spread without holding outright positions in both benchmarks.
  • Risk Management: Offers an effective hedge for those exposed to price swings and arbitrage opportunities between Asian and Middle Eastern markets.
  • Price Discovery: Facilitates transparent valuation of the relative value between spot and contract propane prices.
  • Capital Efficiency: Reduces margin requirements compared to trading both legs separately.

This contract is especially valuable for LPG importers, petrochemical producers, trading houses, and financial institutions active in the Asian and Middle Eastern propane markets. It provides a focused tool for managing exposure to one of the most important and closely watched price spreads in the global LPG sector.