International Oil Trading: Physical & Paper

SIX MODULES in 3 Half-day Sessions of 4.5 hrs each from 3pm to 5pm & 5.30pm to 7.30pm SGT

Location: Virtual

Venue: Virtual (Check The Map)

Starts: 22 Feb 2022

Ends: 24 Feb 2022

Type: Course

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Understand the mechanisms of market pricing, trading & price risk management, including adapting to changing market conditions and how to deal with price uncertainty 

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.

 

Course Methodology

The course will be taught via a video conferencing platform. The course instructor will adopt an interactive approach which will encourage active participation, delegate engagement and contribution through live sharing of views and experiences.

The Module will:-

  • Guide delegates through the fundamental principles of oil trading and price risk management
  • Allow delegates to learn how prices are established and the importance of timing due to the price volatility of oil markets
  • Provide awareness for how markets work, how to adapt to changing market conditions and how to deal with price uncertainty

Key Learning Outcomes

  • Review the shipping industry & the use of Worldscale in fixing vessels & 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 Director

Full Course Outline

+ Day One: 22 February 2022

Module 1

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

Shipping

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

Module 2

A Deal

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

Risks

  • What are risks?
  • A Discussion

Case Study 1

  • Identifying risks and costs in a portfolio of trades

+ Day Two: 23 February 2022

Module 3

Exposure

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

Case Study 2

  • Some examples of identifying price exposure

Hedging

  • Instruments
  • Never perfect

Module 4

Hedging Using Swaps

  • Definition of a swap
  • Using swaps

Case Study 3

  • Identifying changing price exposure over time

Futures Exchanges

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

+ Day Three: 24 February 2022

Module 5

Clearing

  • Global importance
  • Regulation & costs

Differential Trading

  • Why trade differentials?
  • Backwardation & contango

Case Study 4

  • The Ship Arrives – calculate profit or loss

Module 6

Other Instruments

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

Hedging & Trading Choices

  • Hedge or not?
  • Comparison of instruments

Management Control

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

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

Testimonials

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Contact us for queries, registration and more information:

+65 6338 0064
IOT@CCACADEMY.CO

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