The Singapore 92 East West contract is a commodity CFD (Contract for Difference) in the Gasoline group that represents the price differential between Singapore Mogas 92 Unleaded and Argus Eurobob Oxy FOB Rotterdam Barges.
Contract Purpose
This product differential contract allows market participants to:
- Hedge exposure to the price spread between Asian and European gasoline markets
- Speculate on regional price differentials between Singapore and Rotterdam
- Manage risk related to arbitrage opportunities between Asian and European gasoline markets
Market Significance
- Global Benchmark: Reflects the relationship between key gasoline benchmarks in Asia and Europe
- Arbitrage Indicator: Captures potential price discrepancies between two major gasoline trading hubs
- Regional Supply-Demand Dynamics: Provides insights into the relative supply and demand conditions in Asian and European gasoline markets
Trading Benefits
- Cross-Market Exposure: Provides simultaneous access to both Asian and European gasoline markets
- Risk Management: Allows hedging against price volatility between different regional gasoline benchmarks
- Spread Trading: Enables traders to capitalise on price differentials between Singapore and Rotterdam gasoline markets
This contract is particularly valuable for refineries, trading houses, and financial institutions active in the global gasoline market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between gasoline prices in different regions.