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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/Dubai Crude Europe/Middle East – Commodity Differential CFD

Brent/Dubai Crude Europe/Middle East – Commodity Differential CFD

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Name & Trade Code

Contract Name Brent/Dubai
MT5 Code Brent/Dubai
Contract Classification Commodity Differential CFD
Geographical Region Europe/Middle East

Contract Specification

Sector Energy
Product Group Crude
Tenor Period Up to 24 consecutive forward Tenor Periods available
Maximum Forward Tenor Up to 24 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 View document

Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 31 March 2025 for Mar 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. 24 March 2025 for Mar 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 settlement assessment 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.
MOC Haircut

The Brent/Dubai contract is a commodity CFD (Contract for Difference) in the Crude group that represents the price differential between Brent 1st Line and Dubai 1st Line crude oil futures.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Brent and Dubai crude oil benchmarks
  • Speculate on the relative value of light sweet crude (Brent) versus medium sour crude (Dubai)
  • Manage risk related to arbitrage opportunities between European and Middle Eastern crude oil markets

Market Significance

  • Global Benchmark: The Brent/Dubai spread is a key indicator for the relative value of sweet and sour crude oil worldwide
  • Arbitrage Indicator: Serves as a primary criterion for determining the viability of physical arbitrage between the Atlantic Basin and Asia
  • Refinery Economics: Reflects the changing value proposition for refineries processing different crude grades

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both European and Middle Eastern crude oil markets
  • Risk Management: Allows hedging against price volatility between two major global crude oil benchmarks
  • Spread Trading: Enables traders to capitalise on price differentials between light sweet and medium sour crude oils

This contract is particularly valuable for refineries, trading houses, and financial institutions active in global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between Brent and Dubai crude oil prices.