A new suite of exchange-backed base oils futures contracts using ICIS benchmarks is set to bring risk management tools to a market that has, until now, traded almost exclusively on a physical basis.
LONDON, Jan. 13, 2026 /PRNewswire/ -- Intercontinental Exchange (ICE), a leading global provider of technology and data, in collaboration with ICIS, a global leader in commodity intelligence, has launched the first exchange-backed futures contracts for base oils. Using ICIS pricing benchmarks, the new contracts represent a significant step forward in the management of price risk in the global base oils market. Cash-settled against independent ICIS base oils price indexes, the contracts provide refiners, traders, distributors and end-users with a robust reference for hedging and price discovery across Europe, Asia and the US.
Until now, base oils have largely been traded on a purely physical basis, leaving participants directly exposed to price swings driven by crude oil, feedstocks, regional imbalances and seasonality. The introduction of ICE–ICIS-linked Group II base oils futures establish a regulated, exchange-traded hedging instrument tailored to this market, enabling users to lock in forward prices, stabilise margins and separate physical supply decisions from price risk.
The ICE–ICIS-linked Group II base oils futures suite covers three key regional benchmarks on FCA (free carrier) and FOB (free on board) terms, creating a global risk management framework:
- N150 FCA Northwest Europe - Truck (€/tonne)
- N150 FOB Asia ($/tonne)
- N100/120 FOB US Gulf Export ($/tonne)
Together, these instruments enable market participants to hedge exposure across major producing and consuming hubs using a single, consistent set of benchmarks and contract structures. This global reach supports cross-regional arbitrage, more efficient stock positioning and the ability to manage basis risk between regions as trade flows evolve.
Jane Liu, Director, Strategy at ICIS, said: "This collaboration with ICE marks a pivotal advancement in how the base oils industry manages price risk and enhances global market transparency. By leveraging ICIS's authoritative benchmark data alongside ICE's trading infrastructure, this partnership equips market participants with sophisticated financial tools to improve hedging capabilities, optimise inventory management and make smarter decisions."
Jeff Barbuto, Global Head of Oil Markets at ICE, said: "We look forward to working with our customers and ICIS to develop these markets".
The new ICE–ICIS Group II base oils futures contracts are listed and cleared on ICE and can be traded through participants' usual ICE access points.
To find out more, please visit [Products - Futures & Options | ICE] or email [email protected].
About ICIS
ICIS – Independent Commodity Intelligence Services – helps businesses mitigate risk, improve productivity, and capitalise on new opportunities. We make some of the world's most important markets more trusted and predictable by providing meaningful data and thought leadership that drive better, more strategic decisions. Our global presence ensures companies around the world have the targeted intelligence they need to make thousands of mission-critical decisions across energy, petrochemical and fertilizer supply chains every day. Working with our customers, we shape tomorrow by connecting markets and optimising the world's valuable resources. With a global team of more than 800 experts, ICIS has employees based in London, New York, Houston, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Dubai, Sao Paulo, Seoul, Tokyo and Perth.
ICIS is part of RELX, a FTSE10 company.
About RELX
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX serves customers in more than 180 countries and territories and has offices in about 40 countries. It employs more than 36,000 people over 40% of whom are in North America. The shares of RELX PLC, the parent company, are traded on the London, Amsterdam and New York stock exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX. The market capitalisation is approximately £56bn/€65bn/$76bn.
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SOURCE ICIS
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