International Oil Trading: Physical & Paper: A 1.5-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: Fujairah, UAE

Venue: Al Diar Siji Hotel, Fujairah, UAE (Check The Map)

Starts: 23 Mar 2019

Ends: 24 Mar 2019

Type: Course

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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

Course Director

Key Trading Strategies & Methodologies

Background and introduction to oil trading – highlighting the differences between fuel oil and marine diesel

Mechanics of trading – including freight, chartering and legal contracts

Price exposure – how to identify it, the difference between supply and price exposure

Hedging – how to manage the price risks identified using futures and swaps

Clearing function and regulation

International price reporting

The workshop will include case studies and real-life examples of how the new risks can be managed and monitored.

Who Should Attend

The workshop is designed for the buyers of shipping fuels, those new to the shipping industry and those in the middle and back office operation functions. The refiners or sellers of fuels to the shipping market need to understand the major changes that their customers are facing.

Why You Should Attend

Understanding the mechanisms of market pricing, oil trading and price risk management is essential for those who need to purchase and sell oil, especially in relation to how the markets work, how to adapt to changing market conditions and deal with price uncertainty.

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 practice basic hedging techniques

Trade future 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

Get In Touch With Us!

+65 6338 0064
+65 6338 4090
iot@ccacademy.co

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