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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 Sing 380 Brent Crack Fuel Oil Asia/Europe – Commodity Differential CFD

Sing 380 Brent Crack Fuel Oil Asia/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name Sing 380 Brent Crack
MT5 Code Sing_380_Brent_Crk
Contract Classification Commodity Differential CFD
Geographical Region Asia/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 6.35
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 Sing 380 Brent Crk contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Fuel Oil 380 CST Singapore and Brent 1st Line crude oil.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Fuel Oil 380 CST Singapore and Brent crude oil
  • Speculate on refining margins for producing high-sulphur fuel oil from crude oil
  • Manage risk related to fuel oil and crude oil price fluctuations across Asian and European markets

Market Significance

  • Refining Margins: Reflects the economics of producing high-sulphur fuel oil from crude oil in the Asian market
  • Regional Arbitrage: Captures opportunities between Asian fuel oil and global crude oil markets
  • IMO 2020 Impact: Provides insights into the value of high-sulphur fuel oil relative to crude oil in the post-IMO 2020 market environment

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both Asian fuel oil and global crude oil markets
  • Risk Management: Allows hedging against price volatility in both fuel oil 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, trading houses, and financial institutions active in both the Asian fuel oil and global crude oil markets. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between high-sulphur fuel oil and crude oil prices across different regions.