Gasoil Futures Margin & Contract Specifications

What Is Gasoil?

Gasoil is a light petroleum product primarily used as a feedstock for producing fuel gas or chemical gases, rather than as a direct transportation fuel. Gasoil futures refer to a low-sulfur gasoil (diesel) contract with physical delivery in the ARA region (Amsterdam–Rotterdam–Antwerp). It serves as an important indicator for European industrial activity and winter heating demand.

Factors Affecting Gasoil Prices

1. International Crude Oil Prices

Gasoil is a derivative of crude oil, with approximately 50%–70% of its cost directly tied to international crude prices such as Brent or West Texas Intermediate (WTI).
As the world’s largest oil-producing alliance, OPEC influences supply through production quotas. If OPEC decides to increase output, the resulting supply expansion typically puts downward pressure on oil prices. Markets closely watch production trends in key producers such as Saudi Arabia, Russia, and the United Arab Emirates, as well as OPEC’s monthly reports.

2. Production Increases from Non-OPEC Countries

Improvements in shale oil efficiency have kept crude production in countries such as the United States, Canada, and Brazil near historical highs. This additional supply affects crude prices and, in turn, gasoil prices.

3. Supply and Demand Dynamics

Gasoil is widely used in truck transportation, agricultural machinery, and industrial boilers. During periods of strong global economic activity, freight volumes increase, lifting demand and prices.
Refinery utilization rates and maintenance schedules also matter. If refineries experience unexpected shutdowns, gasoil supply can tighten sharply, causing prices to surge even when crude oil is plentiful.

4. Energy Transition and Environmental Regulations

The growing adoption of electric vehicles, along with higher shares of renewable and nuclear energy, is structurally weakening long-term demand for oil products, putting pressure on prices.
At the same time, taxes on high-carbon fuels and stricter sulfur-content regulations increase production and distribution costs, which can push prices higher.

5. Seasonal Factors

In North America and Europe, gasoil is often used as heating oil. As a result, demand typically peaks from November through March, when prices are usually higher. Cold snaps can trigger sudden surges in heating oil demand, leading to pronounced seasonal price volatility.

6. Geopolitical Risks

Oil is often viewed as a geopolitical tool, and shifts in geopolitical conditions can generate sharp risk premiums. Developments in the Middle East—such as security in Persian Gulf shipping lanes—and the evolution of the Russia–Ukraine conflict are key variables. Political instability in countries like Venezuela or production disruptions in Libya, while relatively small in global output terms, can still trigger panic buying during sensitive periods.

7. U.S. Dollar Exchange Rate

Oil prices are typically denominated in U.S. dollars. When the dollar strengthens, oil becomes more expensive for buyers using other currencies, suppressing demand and generally putting downward pressure on prices.

8. Government Policies

Government policy stances can also influence oil prices. For example, the Trump administration favored lower oil prices to help control inflation. Such policy signals can exert strong psychological pressure on the market, weighing on oil prices.

Low Sulphur Gasoil Futures Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Low Sulphur Gasoil Futures Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Low Sulphur Gasoil FuturesFutures.

Low Sulphur Gasoil FuturesLast Trading Day

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