Oil Pricing Mechanisms (ON-DEMAND) - OPM
Course Summary
Oil Pricing Mechanisms is an online training course that provides a comprehensive guide to the pricing mechanisms used in the wholesale oil trading markets. You’ll learn about the history of oil pricing, including the use of fixed pricing and netbacks for crude oil contracts. We’ll cover the components that are used in oil pricing, including units, averaging periods, benchmarks and Incoterms. We’ll review the methodologies used by the main price reporting agencies, and will assess the links between physical and paper market prices, including the use of EFPs.
New content - This course will explain the impact of the 2026 Middle East crisis on the oil markets.
Course Content
You will learn to:- Recognize the types of pricing mechanisms used at different times during the history of the oil market
- Select the units and currencies used for oil pricing in different regions
- Identify the key components used in oil pricing
- Recognize the key benchmarks used in oil pricing
- Identify the way oil contracts are priced using Official Selling Prices (OSPs) and posted prices
- Distinguish between the different methodologies used by the price reporting agencies
- Point out the links between physical and paper market pricing
- Understand the 2026 Middle East crisis
- Strait of Hormuz
- Middle East Production and Trade Flows
- Alternative Routes to Market
- Refineries and products
- Oil pricing - benchmarks, market structure, higher volatility
- How long storage can fill the gap
- Freight costs
Practice exercises and self-assessment quizzes are included to help reinforce key topics introduced throughout the course.
A comprehensive final test will be given at the end of the course.
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