In February 2026, DYM Resources presented at the Argus panel discussion on risk management, hedging and transparency in base oils market, joining industry leaders including TotalEnergies and CME Group.
During the panel discussion, our base oils trader Galina Kurasheva addressed how risk management in the oil and lubricants market has evolved into a daily operational discipline.
The base oils market is currently shaped by six structural risk factors:
- Price volatility: for example, over the past 12 months, Group III 4cSt FCA NWE prices have moved by approximately 14%.
- Freight spikes: the Red Sea disruption that began at the end of 2023 continues to affect global trade flows throughout 2024–2025.
- Currency exposure: the USD has moved by approximately 15% against the EUR over the last 12 months. The oil trading is largely USD-denominated, FX fluctuations directly affect margins, inventory valuation and forward pricing.
- Thin margins: margins dropped to the lowest levels in years; any loss is critical.
- Inventory and timing risk: transit times of 60-90 days and extended storage periods significantly increase capital exposure.
- External shocks: geopolitical developments, tariffs, sanctions and regional conflicts continue to influence trade routes and supply access. Unlike price or FX exposure, political risk cannot be directly hedged.
Price and currency risks can be mitigated through futures contracts, including the recently launched Group II instruments, combined with a balanced mix of term and spot procurement. In January 2026, the Intercontinental Exchange (ICE), in cooperation with ICIS, launched the first exchange-backed futures contracts for base oil Group II (100N and 150N grades).
Availability risk requires supplier diversification and structured stock management to reduce dependency on single sources and protect supply continuity in tight market conditions.
Freight risk, increasingly relevant in recent years, can be partially mitigated through long-term carrier agreements and, where available, freight hedging instruments.
For DYM Resources, as a trading company specializing in Group I, Group II and Group III base oils, structured risk management is embedded in daily operations. Our operations across multiple regions, currencies, and supply chains require disciplined control of price, FX, freight, and timing exposure.
By actively monitoring market indicators, diversifying sourcing and utilizing available financial instruments, we aim to reduce volatility impact and strengthen supply reliability for our partners.
If you need help with base oils sourcing or managing your supply chain, please contact DYM Resources, we will be happy to discuss solutions.
