International Oil Trading: Physical & Paper


Location: Virtual

Venue: N.A.

Starts: 24 Aug 2021

Ends: 26 Aug 2021

Type: Course

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This introductory course in oil trading covers both crude oil and refined products trading and will guide all delegates through the fundamental principles of oil trading and price risk management. It will cover how prices are established and the importance of timing as oil markets are so price volatile.

Learn about how these markets work, how to adapt to changing market conditions and how to deal with price uncertainty.

Now a new 3-day program, with extended course outline and case studies added

Six Modules Covering Crude Oil & Refined Products Trading

3 Half-Day Sessions of 4.5 hours each

3pm to 5pm & 5.30pm to 7.30pm Singapore Time


Full Course Outline

+ Day One: 24 August 2021

Module 1: 3pm to 5pm SGT

Global Oil Trading

  • The reasons for oil trading
  • History
  • The flows from well-head to consumer

Oil Pricing

  • How oil is priced
  • The use of price reporters, Argus & Platts
  • Their importance


  • The importance of shipping
  • The need to understand the shipping market
  • Fixing vessels, brokers & costs


Module 2: 5.30pm to 7.30pm SGT

A Deal

  • Oil contracts
  • The terms used
  • Importance of timing and the costs


  • What are risks?
  • A Discussion

Case Study 1

  • Identifying risks and costs in a portfolio of trades

+ Day Two: 25 August 2021

Module 3: 3pm to 5pm SGT


  • Price exposure in volatile markets
  • The importance of immediately identifying exposure

Case Study 2

  • Some examples of identifying price exposure


  • Instruments
  • Never perfect

Case Study 3

  • Identifying changing price exposure over time


Module 4: 5.30pm to 7.30pm SGT

Hedging Using Swaps

  • Definition of a swap
  • Using swaps

Futures Exchanges

  • ICE, NYMEX, Others
  • Using oil futures to hedge

+ Day Three: 26 August 2021

Module 5: 3pm to 5pm SGT


  • Global importance
  • Regulation & costs

Differential Trading

  • Why trade differentials?
  • Backwardation & contango

Case Study 4

  • The Ship Arrives – calculate profit or loss


Module 6: 5.30pm to 7.30pm SGT

Other Instruments

  • Forward contracts
  • Open spec naphtha contracts
  • Option contracts
  • Optionality in contracts

Hedging & Trading Choices

  • Hedge or not?
  • Type of company
  • Comparison of instruments

Management Control

  • Primary need for management control
  • Trading systems
  • Who does what?

Course Director

Key Learning Outcomes

  • Review the shipping industry and the use of Worldscale in fixing vessels and calculating freight costs
  • Learn the business of doing a deal with all the trading jargon
  • Examine the criticality of price exposure & the need to hedge
  • Understand the mechanics of hedging and evaluate different hedging instruments
  • Analyze the use of oil futures & swaps and their differences
  • Assess the importance of clearing trades and legal aspects of oil trading
  • Identify the importance of management control of the trading function

Course Duration in Different Timezones

  • 3pm to 5pm and 5.30pm to 7.30pm Singapore/Malaysia/Hong Kong/China
  • 2pm to 4pm and 4.30pm to 6.30pm Thailand/Vietnam/Cambodia/Indonesia
  • 11am to 1pm and 1.30pm to 3.30pm UAE/Oman
  • 10am to 12pm and 12.30pm to 2.30pm Bahrain/Kuwait/Saudi Arabia
  • 9am to 11am and 11.30am to 1.30pm Amsterdam/France/Germany/Denmark/Norway/Spain/Switzerland
  • 8am to 10am and 10.30am to 12.30pm London/Ireland/Portugal/Ghana

Who Should Attend

  • Crude & Refined Product Traders
  • Pricing & Risk Managers
  • Directors
  • Planning & Economic Managers
  • Middle & Senior Managers
  • Business Development Managers
  • Sales & Marketing Managers
  • Business Originators
  • Corporate & Strategic Planning Managers
  • Commercial Managers
  • Demurrage & Claim Managers
  • Supply Operation Managers
  • Refinery Planners & Schedulers
  • Channel Optimization Managers
  • Procurement & Purchasing Managers
  • Finance & Revenue Managers
  • Analysts – Market, Credit, Business, Financial, Trading & Commercial


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Contact us for queries, registration and more information:

+65 6338 0064

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