Sing 0.5 Crk Fuel Oil Asia/Europe – Commodity Differential
Contract for Difference
Spread Bet
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 | Sing 0.5 Crk(100bbl-$/bbl) | |
| MT5 Code | Sg0.5_Crk | |
| Contract Classification | Commodity Differential CFD | |
| Geographical Region | Asia/Europe |
Contract Specification
| Sector | Energy | |
| Product Group | Fuel Oil | |
| Tenor Period | Consecutive individual whole calendar months, e.g. Jun 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. 30 June 2025 for Jun 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 June 2025 for Jun 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. |
The Singapore 0.5% Crack contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Singapore and Brent 1st Line crude oil.
Contract Purpose
This product differential contract allows market participants to:
- Hedge exposure to the price spread between Marine Fuel 0.5% FOB Singapore and Brent crude oil
- Speculate on refining margins for producing low-sulphur marine fuel from crude oil
- Manage risk related to IMO 2020 sulphur regulations in the shipping industry
Market Significance
- Refining Margins: Reflects the economics of producing low-sulphur marine fuel from crude oil in the Asian market
- IMO 2020 Impact: Captures the ongoing effects of the International Maritime Organisation’s 2020 sulphur cap regulation
- Regional Arbitrage: Provides insights into price differentials between Asian marine fuel and global crude oil markets
Trading Benefits
- Cross-Market Exposure: Provides simultaneous access to both Asian marine fuel and global crude oil markets
- Risk Management: Allows hedging against price volatility in both marine fuel and crude oil markets
- Spread Trading: Enables traders to capitalise on price differentials between refined products and crude oil
This contract is particularly valuable for refineries, shipping companies, bunker fuel suppliers, and commodity traders active in both the Asian marine fuel and global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.
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 | Sing 0.5 Crk($/0.01) | |
| MT5 Code | Sg0.5_Crk.s | |
| Contract Classification | Commodity Differential SB | |
| Geographical Region | Asia/Europe |
Contract Specification
| Sector | Energy | |
| Product Group | Fuel Oil | |
| Tenor Period | Consecutive individual whole calendar months, e.g. Jun 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. 30 June 2025 for Jun 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 June 2025 for Jun 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. |
The Singapore 0.5% Crack contract is a commodity SB (Spread Bet) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Singapore and Brent 1st Line crude oil.
Contract Purpose
This product differential contract allows market participants to:
- Hedge exposure to the price spread between Marine Fuel 0.5% FOB Singapore and Brent crude oil
- Speculate on refining margins for producing low-sulphur marine fuel from crude oil
- Manage risk related to IMO 2020 sulphur regulations in the shipping industry
Market Significance
- Refining Margins: Reflects the economics of producing low-sulphur marine fuel from crude oil in the Asian market
- IMO 2020 Impact: Captures the ongoing effects of the International Maritime Organisation’s 2020 sulphur cap regulation
- Regional Arbitrage: Provides insights into price differentials between Asian marine fuel and global crude oil markets
Trading Benefits
- Cross-Market Exposure: Provides simultaneous access to both Asian marine fuel and global crude oil markets
- Risk Management: Allows hedging against price volatility in both marine fuel and crude oil markets
- Spread Trading: Enables traders to capitalise on price differentials between refined products and crude oil
This contract is particularly valuable for refineries, shipping companies, bunker fuel suppliers, and commodity traders active in both the Asian marine fuel and global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.
