On 13 January 2026 in London, Intercontinental Exchange (ICE), together with ICIS, has launched the first exchange-backed futures contracts for base oils.
These new futures contracts are based on ICIS pricing benchmarks and give the global base oils market a long-awaited tool to manage price risk. The contracts are cash-settled against independent ICIS price indexes and can be used by refiners, traders, distributors, and end-users to hedge prices and improve price transparency across Europe, Asia, and the United States.
Historically, base oils trading has been highly exposed to price volatility caused by crude oil movements, feedstock costs, regional supply imbalances, and seasonal demand. The introduction of ICE–ICIS Group II base oils futures changes this by offering a regulated, exchange-traded hedging tool. With these contracts, companies can lock in future prices, protect margins, and manage price risk separately from physical supply decisions.
The new futures cover three key regional benchmarks, creating a global framework for risk management:
- N150 FCA Northwest Europe – truck (€/tonne)
- N150 FOB Asia ($/tonne)
- N100/120 FOB US Gulf Export ($/tonne)
Together, these benchmarks allow companies to hedge price exposure across major production and consumption regions using a consistent contract structure. This supports cross-regional trading strategies, more efficient inventory planning, and better management of price differences between regions as global trade flows change.
The ICE–ICIS Group II base oils futures contracts are now listed and cleared on ICE and can be traded through existing ICE trading access points.
For DYM Resources, as a trading company focusing on Group I, Group II and Group III base oils, this development strengthens our ability to manage price volatility in the lubricants market. Exchange-backed futures support more structured risk management, better margin protection, and smarter planning across regions. Ultimately, this helps us offer more stable pricing and reliable supply to our partners.
