International Oil Trading: Physical & Paper: A 2-Day Course

A practical step-by-step approach to structure a physical or paper trading deal through the highs and lows of the pricing cycle

Location: Kingdom of Bahrain

Venue: Kingdom of Bahrain (Check The Map)

Starts: 01 Apr 2020

Ends: 02 Apr 2020

Type: Course

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This comprehensive 2-Day oil trading course on PHYSICAL & PAPER will guide all delegates through the fundamental principles of oil trading, with practical aspects conducted in a predominantly workshop environment, working in small groups on frequent case studies to develop an understanding of trading practices and risk. You will learn how to follow a deal from beginning to end, from negotiation to writing a contract, calculate shipping and other costs, determining the risks and how to manage them. In addition, wherever possible real oil market prices and live market conditions will be used in the case studies.

Oil prices continue to be volatile, making an understanding of the mechanisms of market pricing and of trading and price risk management essential for everyone involved in the commercial areas of the oil industry. The past few years have seen volatility across all crude oil and refined product markets. All those involved in the industry, or who need to purchase or sell oil, need to be aware of how these markets work, how to adapt to changing market conditions and how to deal with price uncertainty.


Course Director


Key Trading Strategies & Methodologies

How to negotiate and write a contract

Develop an understanding of trading
practices and risks

Determine and manage the risks of a deal

Measure price exposure and how to hedge

Using swaps and futures

Comparing deals and calculating profitability

Course Outline

  • Background and introduction to oil trading – highlighting the differences between fuel oil and marine diesel
  • International price reporting
  • Mechanics of trading – including freight, chartering and legal contracts
  • Price exposure – how to identify it, the difference between supply and price exposure
  • Oil futures and swaps – the difference
  • Hedging – how to manage the price risks identified using futures and swaps
  • Clearing function and regulation
  • Case studies and exercises

What You Will Learn

  • Write a contract for the purchase and sale of crude oil and refined products
  • Identify price exposure and how to hedge it
  • Use swaps and futures to practise basic hedging techniques
  • Trade futures and swaps
  • Negotiate cost and compare physical and paper deals
  • Calculate the freight and the costs
  • Identify and manage the risks in physical oil trading
  • Compare and calculate the profitability of deals
  • Identify corporate and legal issues in physical and paper deals

Who Should Attend

Crude & Refined Products Traders

Pricing & Risk Managers


Middle & Senior Managers

Business Development Managers

Corporate & Strategic Planning Managers

Sales & Marketing Managers

Business Originators

Commercial Managers

Supply Operations Managers

Chartering / Operations Managers

Refinery Planners & Schedulers

Procurement & Purchasing Managers

Retail Managers

Finance & Revenue Managers

Legal / Contract Managers

Company Secretaries

Analysts – Market, Credit, Business, Financial, Power, Trading, Marine & Commercial

Administrators / Logistics / Freight Officers

Media Sponsors

Get In Touch With Us!

+65 6338 0064
+65 6338 4090

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