3 days TRT/OMT
- 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.
- This training provides a better understanding of the structure of the markets, the uses and the impacts of physical and financial markets for crude oil and petroleum products.
- Upon completion of the course, participants will be able to:
- analyze the parameters which influence prices of crude oil and petroleum products,
- review the different oil trading markets by type of transaction,
- understand the importance of maritime transport costs in oil supply economics,
- comprehend the hedging techniques available for protection against fluctuations in prices.
- Bachelor’s degree +3 and/or a minimum 3 years of working experience in Downstream.
Ways and means
- Syndicate works on case studies.
- Case studies.
OIL SUPPLY & DEMAND FUNDAMENTALS 0.25 day
- Energy resources.
- Energy demand and supply.
- Oil producing countries, OPEC, consuming countries, international oil companies: constraints and strategies.
SHIPPING 0.25 day
- General features.
- The Market and its players-Fixing of the freight rate (Worldscale).
- Chartering contracts.
- Risk control and environmental protection.
CRUDE & PETROLEUM PRODUCTS PHYSICAL TRADING 1 day
- “What is the value of a crude oil?”: the refiner's point of view.
- Different types of contracts: long term, spot and forward.
- Main oil markets and their features.
- Key benchmark crudes.
- The role of the PRAs (price reporting agencies).
- Links between Trading and Shipping.
- Products trading.
- Main provisions of a sale/purchase contract.
EXCHANGES & FUTURES TRADING 1 day
- The concept of volatility.
- Definition of a contract: the cases of WTI and Brent.
- Exchanges and their organization: the cases of NYMEX and ICE.
- Main Futures Markets.
- Hedging principles.
- Hedging imperfections. Basis risk.
- Market structure (contango, backwardation).
- Case study.
DERIVATIVES 0.25 day
- Options: principles, basics and characteristics.
- Interests and limits of options.
- Swaps: principles, basics and characteristics.
- Interests and limits of swaps.
HEDGING STRATEGIES - VARIOUS CASE STUDIES ON HEDGING 0.25 day
- For a refiner.
- For a crude oil producer.
- For a marketer.
- For an industrial consumer.