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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.

WordPress on Azure Fuel Oil 0.5% Rdam Barges Crack ($/0.01) Fuel Oil Europe – Commodity Differential SB

0.5% Rdam Barges Crack ($/0.01) Fuel Oil Europe – Commodity Differential SB

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Name & Trade Code

Contract Name 0.5% Rdam Barges Crack ($/0.01)
MT5 Code Barges_0.5_Crk.s
Contract Classification Commodity Differential SB
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
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
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 Rotterdam Barges 0.55 Crack contract is a commodity Spread Bet (SB) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Rotterdam Barges and Brent 1st Line crude oil futures.

Contract Purpose

This commodity differential spread bet contract allows market participants to:

  • Gain exposure to the crack spread between 0.5% sulphur fuel oil in Rotterdam and crude oil
  • Hedge against price fluctuations in the European fuel oil market relative to crude oil
  • Speculate on the future price relationship between low sulphur fuel oil and crude oil

Market Significance

  • Refinery Economics: Reflects the profitability of producing low sulphur fuel oil from crude oil
  • Environmental Regulations: Indicates the impact of IMO 2020 sulphur regulations on fuel oil pricing
  • Regional Indicator: Provides insights into supply and demand dynamics for low sulphur fuel oil in Northwest Europe

Trading Benefits

  • Spread Trading: Offers a convenient way to trade the price differential between fuel oil and crude oil
  • Risk Management: Allows refineries and shipping companies to hedge their exposure to fuel oil crack spreads
  • Market Access: Provides exposure to a key European fuel oil benchmark through a standardised financial instrument

This contract is particularly valuable for refineries, shipping companies, trading houses, and financial institutions active in the European fuel oil market. It offers a tool for managing price risks and implementing trading strategies related to the 0.5% sulphur fuel oil crack spread in Rotterdam, with accessibility through the MT5 platform and cash settlement based on Platts and ICE assessments.

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