International Oil Trading And Price Risk Management Training Course

INTRODUCTION

Oil Trading & Price Risk Management training course is designed to provide you with a complete understanding of the financial and physical and markets for crude oil and petroleum products. This course covers the advanced trading techniques applicable to the management of price risk in international oil trading. Through a variety of case studies, delegates will learn the techniques involved in trading and how to address day-to-day problems of managing the price risk associated with the role of producer, refinery or consumer with an integrated trading position. The course focuses on the key markets, pricing and the mechanisms involved in trading.

This training course will highlight:

• The significance of freight costs key to trading and how these may be hedged
• How international crude oils and products are priced
• How to trade in the futures and forwards markets
• How to use and understand the EFPs, swaps and CFDs
• Option theory and the factors affecting options trading
• The management of price risk within trading positions through the application of hedging techniques
• Freight hedging
• The development and management of successful trading strategies for the producer, refiner and the consumer
• The essentials of constructing purchase/sale contracts and arising exposures

Who is this Training Course for?

• Personnel who are entering the trading arena
• Oil company staff who interface with the oil trading sector and require a better understanding of trading practice, such as operations, accounting, financial control, treasury, supply or production function
• Those in the legal and banking fields who want a better understanding of trading practice

COURSE OUTLINE

Introductory Material

• Introduction to trading and markets
• Price reporting
• Pricing mechanisms

Crude Oil Trading

• International pricing of crude oils
• Crude oil trading
• Dated Brent and Brent Markets

Products Trading

• Mechanics of trading products
• Oil broking
• Costings
• Comparing alternative outlets
• Arbitrage trading
• Valuing product quality

Contracts and Trading

• Negotiating a deal
• Writing a contract
• Calculate the profitability of deals
• Spread trading
• Contango and backwardation
• Legal issues

Tendering

• Prepare and evaluate a tender

Chartering and Freight

• Calculating freight costs using World scale
• Chartering a ship
• Calculate demurrage
• Freight exposure and swaps

Performance and Credit

• Client /counterpart risk
• Documentation

Risk and Exposure

• Identifying and minimizing risks in trading
• Price exposure
• Separation of price and supply

Risk Management Instruments

• Futures markets
• Forward markets
• Swaps and OTC markets
• Introduction to options
• Comparison of instruments

Risk Management Techniques

• Hedging with futures and swaps
• Basis risk
• Refinery margin management

Trading Controls

• Mark to market

 Methodology

The instructor led trainings are delivered using a blended learning approach and comprises of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields.

Key Notes

a. The participant must be conversant with English.

b. Course duration is flexible and the contents can be modified to fit any number of days.

c. The course fee includes facilitation training materials and a certificate upon successful completion of Training.

d. One-year post-training support Consultation and Coaching provided after the course.

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