ICE Low Sulphur Gasoil is the benchmark for the middle part of the refined barrel and the world’s leading refined product benchmark for the oil market. It is an important hedging and trading tool, providing participants with access to a range of products in a single contract, and plays the same role for middle distillate oil that ICE Brent Crude plays for the crude oil market.

Learn about updates and the market outlook to ICE Low Sulphur Gasoil Futures following the EU Embargo: Watch the webinar replay

Demand is rising for a RIN-less futures contract that represents the cross Atlantic flow of diesel and the domestic home heating oil barrel, as record distillate volumes are transported through New York Harbor.

The physically delivered futures contract provides an accurate hedging tool complimenting ICE’s physically settled Low Sulphur Gasoil contract and ICE’s Singapore Gasoil financially settled contract.

Listed as a ULSD 67 grade, the NY Harbor Ultra Low Sulphur Heating Oil is designated by the Environmental Protection Agency (EPA) as a heating oil, therefore the price of Renewable Identification Numbers (RINs) is excluded from the contract.

The ULSHO contract has a familiar physical delivery mechanism, expiry and rulebook, providing an efficient setup process and effective price discovery available for global market participants.

Maritime transport is central to the global economy, with over 90% of world trade carried by sea. New International Maritime Organization (IMO) regulations, which limit Sulphur emissions in shipping bunker fuel, came into effect at the beginning of 2020.

To assist compliance with these regulations, participants can access critical risk management tools via our Marine Fuel complex. Comprised of over forty contracts, all settled against the S&P Global Platts Marine Fuel 0.5% assessments, these products operate alongside ICE’s deeply liquid benchmark Low Sulphur Gasoil, fuel oil and LNG markets.

As worldwide legislations prioritize climate risk mitigation strategies, biofuels play a key role in meeting national goals of reducing greenhouse gas emissions in the transportation sector. ICE’s futures offering includes a range of hedging tools for the biodiesel and bioethanol markets, comprising first and second-generation biofuels across several locations.

Wet freight is closely linked to the crude and refined oil markets and operates both East and West of the Suez Canal. Freight has become an active derivatives market and trading takes place in World scale points or USD per Metric Ton across several point-to-point routes. Price volatility in the global energy markets has seen an increase in participation by traders, commercial entities and banks in the wet freight derivatives market which provides opportunities for clients to hedge cargo movements.