International Oil Trading - Advanced Techniques and Strategic Price Risk Management is an instructor-led course presented by the energy training experts at Mennta Energy Solutions. This course covers the advanced trading techniques applicable to the management of price risk in international oil trading. Through a variety of case studies, delegates will learn the techniques involved in trading and how to address day-to-day problems of managing the price risk associated with the role of producer, refinery or consumer with an integrated trading position. Much of the work will be carried out in syndicate groups where delegates will learn to develop and manage trading strategies designed to maximise corporate profitability and reduce exposure to losses arising from the price fluctuations. It is recommended that delegates should either have attended TR0 or TR1 or have a strong working knowledge of the subjects covered in these courses.
After reviewing the background of supply, refining and transportation, the course focuses on the key markets, pricing and the mechanisms involved in trading. Aspects of the various exposures encountered in trading are covered. Advanced trading instruments of swaps, CFDs and options are presented in detail, both from a theoretical and practical point of view, giving the delegates an insight into the application of these instruments in the development and management of a successful trading strategy. Syndicate exercises will address each skill required, providing the delegate with the essential tools and knowledge to successfully manage the price and accompanying risks of their strategy. Additionally, during the week, in a continuous theme case study, each syndicate group will manage their own company positions of equity production, refining supply, product disposal and speculative trading, identifying the pricing risk of new positions and reacting to changing market prices which simulate a live situation.
Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.
What You Will Learn
The content of TR2 is such that delegates who consider attending TR2 will ideally either be experienced in the basic principles of International Oil Trading or have attended either of the appropriate introductory International Oil Trading courses (TR0 or TR1) at The Oxford Princeton Programme or elswhere. Trading personnel who need to increase their knowledge of derivatives, personnel within the back or mid-offices, interacting daily with the trading function, staff who interface with the trading sector and require a better understanding of trading practice such as management accounting, controllers, treasury or supply functions and professionals in associated fields (e.g. legal and banking) who wish to increase their knowledge of practical derivatives used by the oil industry.
Structure of the (Crude Oil) Tanker, Petroleum Products, Chemical and Gas Carrier Markets
Introduction
Crude Oil and Product Markets
Shipping and Freight
Refining
Pricing
Contracts
Product Trading
Crude Trading
Futures Markets
Technical Analysis
Other Risks and Exposures
Introduction to Advanced Instruments
Basis Risks
Swaps
Traded Options
Trading Strategies
Case Studies and Exercises Include: