The Sing Gasoil 10ppm contract is a commodity CFD (Contract for Difference) in the Distillates group that represents the outright price of Singapore Gasoil with 10 parts per million (ppm) sulphur content.
Contract Purpose
This outright contract allows market participants to:
- Gain direct exposure to the price of Singapore Gasoil 10ppm
- Hedge against price fluctuations in the Asian gasoil market
- Speculate on the future price direction of low-sulphur gasoil in Singapore
Market Significance
- Benchmark Status: Serves as a key reference for ultra-low sulphur gasoil pricing in the Asia-Pacific region
- Environmental Impact: Reflects the ongoing demand for low-sulphur fuels
- Regional Indicator: Provides insights into supply and demand dynamics for gasoil in the Singapore market
Trading Benefits
- Price Discovery: Offers a transparent mechanism for determining the price of Singapore Gasoil 10ppm
- Risk Management: Allows hedging against price volatility in the Asian gasoil market
- Market Access: Provides exposure to one of Asia’s key gasoil benchmarks
This contract is particularly valuable for refineries, trading houses, and financial institutions active in the Asian gasoil market. It offers a tool for managing price risks and implementing trading strategies related to ultra-low sulphur gasoil in Singapore.