Introduction to Oil Trading & Price Risk Management
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COURSE DATES AND LOCATIONS
DATE
Duration
LOCATION
FEES
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INTRODUCTION
The fossil fuel industry has a pivotal role in driving the global economy. Crude oil and the petroleum products derived from it, the Petroleum itself is used for numerous products, that include petrochemicals, medicines, cosmetics, and thousands of other products used in our daily lives, so Crude oil and petroleum products are considered among the world’s most important resources, itis plays an important part in the economic activity of all nations.
This course will provide you with a complete understanding of the financial and physical and markets for crude oil and petroleum products. The economic framework of the oil industry is studied in detail with a particular reference to economic slowdown caused by pandemics. the Crude & petroleum products physical trading , Market price strategies, Concepts in oil trading , Petroleum products price setting mechanism, Exchanges & futures trading and Derivative products swaps and options
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COURSE OBJECTIVES
At the end of this course you will be able to:
- Review the different oil trading markets by type of transaction
- Understand the principle of financial derivatives products like Swaps and Options
- Understand the pricing mechanism of crude oil and petroleum products
- Comprehend hedging techniques available for protection against fluctuations in prices
- Review the different types of contracts: long term, spot and forward
- Understand how crude oil and petroleum products are traded
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COURSE AUDIENCE
This course is made for
- Businessmen and financiers
- Energy industry journalists and reporters
- Petroleum economists
- Traders & Brokers
- Oil and Gas business students
- All personnel in the petroleum or associated industries needing to improve their knowledge and understanding of crude oil and petroleum products trading and pricing mechanisms
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COURSE OUTLINE
Day One
Introduction to Crude Oil: A Finite Resource
- Introduction to Upstream Oil & Gas Industry
- Oil & Gas Reserves, Production, Consumption & Trade
- The Impact of The Shale Industry
- Trends in Carbon Emissions and Carbon Trading
- Basic Refining and Refining Complexity
- Refining Economics
Day Two
Market Price
- Different Strategies
- International Oil Trade
- Anatomy of The Crude Oil Pricing System
- Prices on The Oil Markets
- Hedging – Risk Management
Day Three
Introductory Concepts in Oil Trading
- Trading on The Oil Markets
- The Spot Markets
- Spot Crude Oil Prices
- The Brent Market
- Indexing Crude Oil Prices
Day Four
Petroleum Products Price Setting Mechanism
- How are Prices Reported?
- The Physical Futures Markets
- The Financial Futures Markets
- The Historical Development of The Petroleum Exchanges
- Futures Contracts
- Pricing Structures: Backwardation and Contango
- The Limitations of The Futures Markets
Day Five
Derivative Products: Swaps and Options
- The Definition of An Option
- The Cost of An Option
- The Definition of a Swap
- The Historical Development of The Petroleum Exchanges
- USA / UK/ Singapore
