The New Oil Trading Market Realities
New rules coming into force from 2020 to curb the pollution produced by the world’s ships are worrying oil producers, refiners, bunker fuel sellers and shipping companies alike. The global shipping fleet uses about 4 million barrels a day of high sulphur bunker fuel. Much of this will disappear immediately to be replaced by marine diesel (also known as marine gasoil). Both the absolute price and the price volatility of diesel are higher than for heavy fuel oil but there are well-tested techniques to help manage the risks involved.
This 1.5-day workshop will guide delegates in the principles of oil trading with practical aspects, particularly the very large international middle distillate market, and the concept of managing new price risks using futures and swaps. Working in small groups on frequent case studies, delegates will develop an understanding of trading practices and risk, learning how to deal from beginning to end, from negotiation to writing a contract, calculate shipping and other costs and determine the risks and how to manage them. Real oil market prices and live market conditions will be used in case studies.
Held in conjunction with the 11th International Fujairah Bunkering & Fuel Oil Forum 2019