Global Oil Contracts
Trade with the world's #1 oil derivatives liquidity provider
Why Trade Global Oil Contracts?
New Ecosystem of Contracts
Driver of Global Economy
Hedges Against End-User Prices
Industry Quality Data: Flux
Trade on MetaTrader 5
Macro & Technical Analysis
How to Trade Global Oil at Onyx Markets?
What is Global Oil?
Global oil at Onyx Markets is an ecosystem of CFDs and spread betting contracts that track the financial oil market. This includes not just traditional oil contracts like Brent and WTI, but also the critical oil swaps market.
The oil swaps market is the wholesalers market that is used to set the price for the end user physical oil products you consume every day, in many different regions around the world. This includes contracts like Japanese Naphtha, European Jet Fuel, Singapore Shipping Fuel and Saudi Arabian Propane, but also the traditional contracts like crude, gasoline and diesel, but in not just one region.
How Is the Financial Oil Market Used by the Oil Industry?
Traditional financial oil contracts like Brent, WTI, RBOB, Gasoil and Heating Oil that are already available to the retail community and are mostly speculative contracts that reflect physical oil around 2 months into the future and in very limited regions. They are very important contracts for liquidity and initial price discovery, but there is another layer of pricing that differentiates from these contracts that sets the real price of oil products around the world.
Because of the use of oil swaps ecosystem to set prices in the physical world, these contracts are incredibly important to the industry, and play a significant part in how the physical world operates.
Price Discovery: PRA & Financial Oil
Price Reporting Agencies (PRAs) are vital players in the global oil market, providing price indexes that serve as benchmarks for physical market negotiations. These independent firms publish daily price assessments for various oil products, which traders use to negotiate deals, typically agreeing on differentials to these indexes to arrive at final transaction prices.
The main challenge for PRAs is ensuring their assessments accurately reflect the underlying physical market. They achieve this by collecting transaction data, analysing market information and applying expert judgment. Notably, the financial oil market significantly influences these index prices, as at times there maybe only a small portion of physical transaction data factoring into a specific assessment.
This interplay between financial and physical markets underscores the critical role of PRAs in the oil industry. Their assessments impact everything from fuel costs to investment strategies, making the financial oil market incredibly important to both the physical market and the global economy. Given their significance, PRAs work hard to ensure the integrity and reliability of their price assessments.
Oil swaps settle on these indexes, including many of our CFD and Spread Bet contracts.
Hedging: Oil Price Protection
Hedging is a crucial practice in the oil industry, allowing companies to secure future oil prices and manage risk. It involves using financial contracts that closely mirror the physical oil being produced or consumed. Oil swap contracts are particularly effective for hedging, as they track the future price of physical oil by expiring and settling against the value of PRA assessments. Various players in the oil industry utilise the oil swaps market for different purposes:
- Producers: use it to secure future selling prices for their oil.
- Consumers: employ it to lock in future buying prices.
- Refiners: leverage it to manage their input costs and output prices.
- Oil Traders: use swaps to protect trade margins on transactions involving moving oil globally or placing it in storage.
By using oil swaps, these market participants can effectively manage their exposure to price fluctuations, creating a more stable and predictable financial environment for their operations. This practice is fundamental to risk management in the volatile oil market, allowing companies to focus on their core business activities with greater confidence in their future financial positions.
Speculation: Investing in Oil Price Variations
The oil swaps market has evolved into a powerful tool for both hedging and speculation, bridging the gap between physical and financial oil markets. It allows producers, consumers, and traders to manage price risks effectively, with contracts often tracking physical oil prices. Simultaneously, it has opened doors for speculative traders and investors to gain exposure to oil prices without dealing with the actual physical commodities and the risk that brings. This market’s growth has increased liquidity and price discovery efficiency, while also potentially introducing new sources of volatility. Currently dominated by voice trading, the oil swaps market presents significant opportunities for expansion, particularly in algorithmic and technical trading. As it continues to develop, it’s likely to play an increasingly crucial role in shaping global oil price dynamics.
Citations
- [1] Tax regulations are subject to change
Crude: Outrights
Crude: Differentials
Crude: Time Spreads
Brent/Dubai Box (Crude), Time Spread, Europe/Middle East -Commodity CFD
Inter-product Time Spread between European and Middle Eastern Crude Oils, known as a "Box"
This contract reflects the difference between the European crude market and Middle Eastern crude markets across two time periods. It is useful for moving exposure to a new tenor period.
Coming SoonDated Brent Sprd (Crude), Time Spread, Europe -Commodity CFD
Spot European Crude Oil
This contract reflects the price of a subset of physical North Sea oil (BFOET) fields between two month tenor periods. This contract is used to roll exposure forward.
Coming SoonDFL Roll (Crude), Time Spread, Europe – Commodity CFD
Inter-product Time Spread between Spot and Financial European Crude Oil
This contract is used by traders to reflect the difference between the spot contract Dated Brent, and the Brent contract, which is heavily driven by the activity of North Sea physical market participants.
Coming SoonDubai Sprd (Crude), Time Spread, Middle East -Commodity CFD
Middle Eastern Crude Oil
This contract reflects the price difference between two different future tenor periods of Middle East Dubai Crude
Coming SoonFuel Oil (Shipping Fuel): Outrights
Fuel Oil (Shipping Fuel): Differentials
Fuel Oil (Shipping Fuel): Time Spreads
Barges 0.5 Spread (Marine Fuel 0.5% FOB Rotterdam Barges) – Commodity CFD
European Very Low Sulphur Fuel Oil (0.5%)
The Fuel Oil Barges 0.5% Spread (“Sprd”) is a financial instrument that allows traders to manage their exposure to price changes in very low sulphur fuel oil (VLSFO) over time. This product specifically focuses on the price difference of Marine Fuel 0.5% FOB Rotterdam Barges between two consecutive months, for example, March 2025 and April 2025.
Coming SoonBarges 3.5 Sprd (Fuel Oil), Time Spread, Europe -Commodity CFD
European High Sulphur Fuel Oil (3.5%)
The 3.5% Fuel Oil Barge Sprd contract is the price difference between two separate tenor months for 3.5% Fuel Oil barges in Europe.
Coming SoonSing 0.5 Sprd (Fuel Oil), Time Spread, Asia -Commodity CFD
Asian Very Low Sulphur Fuel Oil (0.5%)
This contract reflects the price difference between separate tenor months of Asian Very Low Sulphur Fuel Oil (0.5%)
Coming SoonSing 180 Sprd (Fuel Oil), Time Spread, Asia -Commodity CFD
Asian Fuel Oil 180
This contract reflects the price difference between two separate tenor months on the Asia Sing 180 (Fuel Oil)
Coming SoonSing 380 Sprd (Fuel Oil), Time Spread, Asia -Commodity CFD
Asian Fuel Oil 380
This contract reflects the price difference between two separate tenor months on the Asia Sing 380 (Fuel Oil)
Coming SoonDistillates: Outrights
Distillates: Differentials
Distillates: Time Spreads
Gasoil EW Box (Distillates), Time Spread & Product Differential, Asia/Europe -Commodity CFD
Asian Gasoil and European Gasoil
This contract reflects the difference between tenor months on the Asia Gasoil vs Europe Gasoil ("East West gasoil")
Coming SoonSing Jet Kero Sprd (Distillates), Time Spread, Asia -Commodity CFD
Asian Jet
Singapore Jet/Kero is the key Asian/Oceania jet fuel physical benchmark.
Coming SoonNGL: Outrights
NGL: Differentials
NGL: Time Spreads
C3 CP Sprd (NGL), Time Spread, Middle East -Commodity CFD
Middle Eastern Propane
This contract reflects the price difference between separate tenor months on Middle Eastern Propane It is widely used by traders to hedge exposure to price fluctuations in Middle Eastern propane markets across tenors
Coming SoonC3 FEI Sprd (NGL), Time Spread, Asia -Commodity CFD
Far East Propane
This contract allows customers to shift price risk between two different tenor months on Propane, Argus Far East Index (AFEI)
Coming SoonC3 NWE Sprd (NGL), Time Spread, Europe -Commodity CFD
European Propane
This contract reflects differnce in price between two tenor periods of propane prices delivered CIF to Northwest Europe. It is a key tool for hedging exposure to price movements in the regional propane market across tenors..
Coming SoonGasoline: Outrights
Gasoline: Differentials
EBOB Crk Roll (Gasoline), Time Spread & Product Differential, Europe – Commodity CFD
European Gasoline vs European Crude Oil "Gasoline Crack Roll"
The contract reflects the difference in price between European Gasoline and Crude Oil Crack time spreads (two separate tenor months)
Coming SoonSing 92 Crk Roll (Gasoline), Time Spread & Product Differential, Asia/Europe -Commodity CFD
Asian Gasoline vs European Crude Oil "Crack Roll"
This contract allows trade between month tenors of Asia Gasoline Sing 92 and European Crude Oil Crack
Coming SoonGasoline: Time Spreads
EBOB Sprd (Gasoline), Time Spread, Europe -Commodity CFD
European Gasoline
This contract reflects the price difference between EBOB separate month tenors.
Coming SoonSing 92 Sprd (Gasoline), Time Spread, Asia -Commodity CFD
Asian Gasoline
This contract allows EBOB price exposure to be moved into different tenorAsia Gasoline Sing 92
Coming SoonNaphtha: Outrights
Naphtha: Differentials
Naphtha Crk Roll (Naphtha), Time Spread & Product Differential, Europe -Commodity CFD
European Naphtha vs European Crude Oil "Nap Crack Roll"
This contract allows trade between two separate tenor months in the European Naphtha vs European Crude Oil crack
Coming SoonNaphtha: Time Spreads
MOPJ Sprd (Naphtha), Time Spread, Asia -Commodity CFD
Japanese Naphtha
This contract reflects the price difference between tenor months of naphtha in Japan, based on the Mean of Platts Japan (MOPJ). It helps market participants manage exposure to price fluctuations in Asia’s naphtha markets.
Coming SoonNaphtha Sprd (Naphtha), Time Spread, Europe -Commodity CFD
European Naphtha
This contract reflects the price difference between two separate tenor months on European Naphtha
Coming Soon