ICE

ENERGY

Low Sulphur Gasoil

White Paper

Jean-Luc Amos
Director, Oil Market Development
ICE Gasoil: a versatile benchmark

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.

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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.

Who trades Low Sulphur Gasoil futures?

The highly liquid ICE oil markets continue to attract a wide range of users, from commercial participants and producers to asset managers and pension funds.

As of July 27, 2021 - Source: CFTC Commitment of Traders Report

As of July 27, 2021 - Source: CFTC Commitment of Traders Report

As of June 30, 2021 - Source: ICE

Producer / Merchant / Processor / User
Entities with exposure to the underlying physical market for the commodity which use the futures market to hedge the risks associated with such exposure. "Commercial" participants. Examples would include oil exploration and drilling firms, specialist commodity trading firms with physical exposures, producers, exporters/importers, coffee roasters, cocoa processors, sugar refiners, food and confectionary manufacturers, millers, crushers or utility companies who consume oil to generate power.
Swap Dealer

Entities dealing primarily in "swap" or other Over The Counter ("OTC") transactions in the commodity in question and who use the futures market to hedge this exposure. Examples would include investment banks and other complex financial institutions

Managed Money
Entities managing futures trading on behalf of clients; investment firms. Examples include hedge funds, pension funds, registered US commodity trading advisors or commodity pool operators.
Other Reportables
Every other reportable trader. Examples would include proprietary (multi-asset) trading houses, algorithmic traders and local traders.
Nonreportable Positions

This is a balancing figure and consists of the total reportable long, short and spreading positions subtracted from the overall open interest figure for the commodity.