(Bloomberg) -- Trading in European diesel futures and options has thrived since Russian barrels were excluded from the continent’s benchmark, according to Intercontinental Exchange Inc.
ICE said Monday that it saw a series of open interest records in the gasoil, or diesel, market that it operates last month. Activity was particularly strong in options with open interest and quarterly volumes at a record.
The exchange stopped allowing deliveries of Russian fuel into its gasoil contract in early 2023, in line with European Union sanctions following the war in Ukraine. Prior to that, Russian barrels had been deliverable into storage tanks located in the Netherlands and Belgium.
“More than 18 months on from ICE’s first successful delivery of Russian-free barrels of gasoil, the contract continues as the most liquid distillate benchmark,” said Jeff Barbuto, global head of oil markets at ICE.
Gasoil futures have a range of uses from speculative trading to hedging by refiners and consumers.
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