International Oil Trading and Pricing (CLASSROOM) - TR1
Course Schedule
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Price* |
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*Prices do not include VAT, GST, or any other local taxes. All applicable taxes will be added to the invoice.
**Please register by the deadline to help us ensure sufficient attendance and avoid postponing the course.
Course Summary
International Oil Trading and Pricing is a four-day instructor-led oil trading course presented by the energy training experts at Mennta Energy Solutions. This course covers the basic principles of oil trading and the markets. Through a variety of specific exercises, delegates will learn the techniques involved in trading and how to address day-to-day problems.
The course focuses on the key markets, pricing and the mechanisms involved in oil trading. Aspects of the various exposures encountered in trading are covered together with hedging and price risk management techniques. Syndicate exercises will address each skill required. Over the course, syndicate groups will manage their own company positions in live trading situations.
Learning Objectives:
- Comprehend the Brent Market and its influence on international pricing
- Position management with hedging tools
- The structure of purchase/sales contracts including exposures and transaction costs
- Price risk management
- Developing successful trading strategies
- The use of trading instruments to capture the market
- Use of Freight Forwards to manage freight risk
- Working the arbitrage
- Trading structured positions and live markets
It is recommended that delegates should have attended "International Oil Supply, Transportation, Refining and Trading" (SP1) or have working knowledge of all of the subjects covered in that course.
Who Should Attend?
- Personnel who are entering the trading arena
- Oil company staff who interface with the oil trading sector and require a better understanding of trading practice, such as operations, accounting, financial control, treasury, supply or production function
- Those in the legal and banking fields who want a better understanding of trading practice
Course Content
Crude Oil and Product Markets
- Why trade?
- Supply/demand
- How the markets work
Shipping and Freight
- Freight exposure and freight forwards
Pricing
- Price reporting
- Pricing mechanisms
- Price risk
Contracts
Price Risk and Risk Management
- Summary of markets (Physical, Forwards, Futures, Swaps, Options)
- Understanding long and short positions
- Introduction to hedging tools
- Basis risk
Product Trading
- Light and Middle Distillate Trading
- Fuel Oil Trading
- Developing successful trading strategies
- World product markets and pricing
- Locations, time and quality arbitrages
- Futures - features of the key futures markets
- Delivery
Crude Trading
- Developing successful trading strategies
- Negotiating term deals
- Other risks and exposures
- Arbitrage price risk management
- Payment mechanisms, letters of credit
- Counterparty selection
Introduction to Advanced Instruments
- The EFP
- Swaps & Options
- Spreads and basis trading
Case Studies and Exercises Include:
- Price exposure
- Arbitrage
- Basis risk
- Negotiating a deal
- Freight Hedging
- Option valuation
- Contract Risks
- Managing ongoing positions
- Trading the live market
