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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 Crude Brent Swap/Dubai

Brent Swap/Dubai

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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 Brent Swap/Dubai(100bbl-$/bbl)
MT5 Code Brent/Dubai_Swap
Contract Classification Commodity Differential CFD
Geographical Region Europe/Middle East

Contract Specification

Sector Energy
Product Group Crude
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.

Contract Purpose

This contract allows market participants to:

  • Trade the price spread between Brent (the European light sweet crude benchmark) and Dubai (the Middle Eastern medium sour crude benchmark) directly.
  • Hedge exposure to the differential between European and Middle Eastern crude oil markets, especially for those managing physical cargoes or supply contracts between the two regions.
  • Speculate on the relative value of Brent versus Dubai crude, reflecting shifts in global supply, demand, and refinery preferences.
  • Manage risk and capture arbitrage opportunities that arise from movements in the Brent-Dubai spread, which is often influenced by geopolitical events, shipping costs, and changes in regional market fundamentals.

Market Significance

Global Benchmark Relationship:
The Brent/Dubai spread is a key indicator for the relative value of sweet (Brent) and sour (Dubai) crude oil worldwide. It is widely used by traders, refiners, and producers as a reference for pricing, risk management, and physical crude flows between the Atlantic Basin, Middle East, and Asia.

Arbitrage and Trade Flows:
This spread serves as a primary criterion for determining the viability of physical arbitrage between Europe and Asia. When the spread widens or narrows, it can shift the economics of shipping crude oil between these regions, impacting global trade patterns.

Refinery Economics:
The contract reflects the changing value proposition for refineries processing different crude grades. A wider spread may favour the use of one grade over another, influencing refinery runs and product outputs across continents.

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both European and Middle Eastern crude oil markets in a single instrument.
  • Risk Management: Allows hedging against price volatility and basis risk between two of the world’s most important crude oil benchmarks.
  • Spread Trading: Enables traders to capitalise on price differentials between light sweet and medium sour crude oils, supporting sophisticated trading and hedging strategies.
  • Operational Flexibility: Particularly useful for refineries, trading houses, and financial institutions active in global crude oil markets, as it supports both speculative and physical market operations.

This contract is especially valuable for oil producers, refiners, trading houses, and financial institutions managing price risk or exposure in the global crude oil market. It offers a powerful tool for managing the relationship between Brent and Dubai crude oil prices, optimising cargo flows, and implementing advanced trading strategies across the Europe–Middle East axis.

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 Brent Swap/Dubai($/0.01)
MT5 Code Brent/Dubai_Swap.s
Contract Classification Commodity Differential SB
Geographical Region Europe/Middle East

Contract Specification

Sector Energy
Product Group Crude
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.

Contract Purpose

This contract allows market participants to:

  • Trade the price spread between Brent (the European light sweet crude benchmark) and Dubai (the Middle Eastern medium sour crude benchmark) directly.
  • Hedge exposure to the differential between European and Middle Eastern crude oil markets, especially for those managing physical cargoes or supply contracts between the two regions.
  • Speculate on the relative value of Brent versus Dubai crude, reflecting shifts in global supply, demand, and refinery preferences.
  • Manage risk and capture arbitrage opportunities that arise from movements in the Brent-Dubai spread, which is often influenced by geopolitical events, shipping costs, and changes in regional market fundamentals.

Market Significance

Global Benchmark Relationship:
The Brent/Dubai spread is a key indicator for the relative value of sweet (Brent) and sour (Dubai) crude oil worldwide. It is widely used by traders, refiners, and producers as a reference for pricing, risk management, and physical crude flows between the Atlantic Basin, Middle East, and Asia.

Arbitrage and Trade Flows:
This spread serves as a primary criterion for determining the viability of physical arbitrage between Europe and Asia. When the spread widens or narrows, it can shift the economics of shipping crude oil between these regions, impacting global trade patterns.

Refinery Economics:
The contract reflects the changing value proposition for refineries processing different crude grades. A wider spread may favour the use of one grade over another, influencing refinery runs and product outputs across continents.

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both European and Middle Eastern crude oil markets in a single instrument.
  • Risk Management: Allows hedging against price volatility and basis risk between two of the world’s most important crude oil benchmarks.
  • Spread Trading: Enables traders to capitalise on price differentials between light sweet and medium sour crude oils, supporting sophisticated trading and hedging strategies.
  • Operational Flexibility: Particularly useful for refineries, trading houses, and financial institutions active in global crude oil markets, as it supports both speculative and physical market operations.

This contract is especially valuable for oil producers, refiners, trading houses, and financial institutions managing price risk or exposure in the global crude oil market. It offers a powerful tool for managing the relationship between Brent and Dubai crude oil prices, optimising cargo flows, and implementing advanced trading strategies across the Europe–Middle East axis.