Middle East-Asia Oil Trade & Pricing

A 2-Day Virtual Course

Location: Virtual

Venue: N.A.

Starts: 31 Mar 2021

Ends: 01 Apr 2021

Type: Virtual

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Conference Connection's Virtual Training Programme Series

For 2021, a new and revamped course on Middle East-Asia Oil Trade & Pricing will be held on 31 March – 1 April 2021 from 2 to 5:30pm (SGT).

For more information, registrations and other queries, please contact us at:

Tel: (65) 6338 0064 | Email: me-pricing@ccacademy.co

Oil trade between the Middle East & Asia is the world’s largest and most important single inter-regional trade flow of crude oil. Asia’s four largest oil consumers, China, India, Japan & South Korea, secure up to half their crude requirements from the Middle East and, as reported by the US Energy Information Administration, an estimated 76% of 17.3 million barrels per day of crude and condensate that flowed through the Straits of Hormuz in 2018 were bound for Asia.

This 2-day course is focused on oil trade between the Middle East and Asia. This is the world’s largest and most important single trade flow of crude oil. After covering the basics of trade and pricing the course focuses on the pricing of Middle East crude oil in Asia. It will cover how to value different crude oil types and how they compete in price and quality.

Virtual Course: Middle East Crude Price Differentials:

  • Oil market fundamentals and what drives supply, demand, and price movements
  • Models for the valuation of crude oil & factors causing the relative values of crude to change
  • Dynamic relationship of crude oil & petroleum product prices in physical and futures markets
  • How National Oil Companies set formula price for crude oil
  • Netback pricing analysis: An important benchmark to measure profitability & efficiency
  • Methodologies in oil price reporting
  • The role of OPEC & OPEC+ in crude oil markets

Course Director

Course Objectives

This 2-day course will focus on the pricing of Middle East crude oil in Asia, analysing:-

  • How Middle East national oil companies set their official selling prices for Asian Markets
  • How different crude oil types are valued using refinery models
  • How Asian crude oil markets work, exploring the role of quality, timing and location in determining crude oil competitive values

Course Methodology

The course will be taught via a video conferencing platform, over five modules of either 1 or 1.5 hours each. The course instructor will adopt an interactive approach which will encourage active participation and delegate engagement.

Course Outline

+ Day 1: 31 March 2021

Module 1: 2:00pm to 3:00pm

Introduction

  • Global supply and demand of crude oil
  • Global Flows of Crude Oil Trade
  • Disposition of crude oil by end refined
    product

Module 2: 3:20pm to 4:20pm

Buying and Selling Crude Oil and Refined Products

  • Physical market v. futures markets
    • Role of Hedgers and Speculators; Swaps
      markets
  • Spot contracts v. term contracts
  • Contract basis (CIF, C&F, CFR, FOB)
    • Legal definitions; distribution of risk between buyers and sellers

Module 3A: 4:40pm to 5:30pm

Economic Fundamentals of Pricing (demand and supply sides) (Revamped)

  • Microeconomics and Price Theory
    • Supply and Demand Schedules; Marginal
      Pricing; Willingness to Pay and Accept
  • Concept of Gross Product Worth (GPW)
    • Concept of Derived Demand; Joint Production of Various Products
    • GPW calculation (NEW)

+ Day 2: 1 April 2021

Module 3B: 2:00pm to 2:40pm

  • Netback Pricing Analysis: Competition in the Crude Oil Market Across Regions
    • Quality, Location and Time attributes of pricing
    • Conceptual Exercise in handling location (NEW)

Module 4: 3:00pm to 4:30pm

Pricing of Middle East crude oil (Revamped)

  • Evolving OPEC and OPEC+ Roles in Crude Oil
    Markets

    • Historical evolution of pricing in the Middle East; From Seven Sisters to OPEC
  • Pricing Formulaes and Official Selling Prices (OSPs)
    • Why price formulaes for OSPs emerged?
    • Conceptual Exercise on logic of formula
      prices (NEW)
  • Role of Price Reporting Agencies (PRAs) on Crude Oil and Refined Product Pricing
    • Platts “market on close” methodology; Argus weighted average prices
  • New Developments in Middle East Crude Oil markets
    • ADNOC Murban Futures Contract; Shanghai Sour Crude Futures Contract

Module 5: 4:50pm to 5:50pm

In-depth look at price formula calculations

  • How OSP “offsets” are calculated
    • How National Oil Companies (NOCs) set
      premiums or discounts in formula prices
  • Comparing different formulaes
    • Differences among NOCs such was West African and Latin American NOCs (NNPC, PEMEX, etc) and Middle East NOCs (NEW)

Who Should Attend

  • Crude & Refined Product Traders
  • Pricing & Risk Managers
  • Planning & Economic Managers
  • Corporate & Strategic Planning Managers
  • Commercial Managers
  • Channel Optimization Managers
  • Procurement & Purchasing Managers
  • Finance & Revenue Managers
  • Analysts – Market, Credit, Business, Trading & Commercial
  • Trading Manager

 

 

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+65 6338 0064
ME-PRICING@CCACADEMY.CO

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