Sep 30, 2021
The ICE Low Sulphur Gasoil Futures contract is the world’s leading refined product benchmark, with a successful 40-year history as a physically deliverable futures contract for what is now ultra-low sulphur diesel. ICE LS Gasoil Futures are used by commercial oil participants, including refiners, consumers and traders, to manage their price risk; it is also used by investors to express views on the global economy and refined product demand.
As a trusted efficient benchmark, ICE LS Gasoil Futures are at the centre of the European and global middle distillates markets, essential to price discovery, trading and risk management. In addition to diesel, it also anchors many parts of the global refined product complex, including gasoil/heating oil, jet fuel, and low-sulphur IMO-compliant marine fuel. Trading tools include cash-settled futures and options for geographic and quality differentials, inter-product spreads, product cracks, and timespreads.
Like any successful benchmark, ICE Low-Sulphur Gasoil Futures has evolved, changing with market fundamentals and environmental imperatives, such as desulphurisation. As the energy transition gains momentum, decarbonisation has come into sharp focus, with renewables rapidly gaining importance. European biodiesel products traded on ICE, such as FAME, RME, and UCOME, are growing quickly and are priced as a differential to ICE Low Sulphur Gasoil; other products include renewable jet fuel.
As the energy transition continues, supply, demand, and trade flows for refined products and crude oil will evolve, perhaps in unpredictable ways. As always, ICE Low Sulphur Gasoil Futures and related products, along with the broader ICE offerings in refined products and crude oil will adapt, driven by the needs of oil market participants. We look forward to continuing the dialogue with our customers.