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Sessions
This course is not scheduled.
Who should attend?

Audience

    • 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.

Level

  • Proficiency
  • 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.
Learning Objectives
  • 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 hedging techniques available for protection against fluctuations in prices.
Course Content

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 studies.

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.
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Ways & Means
  • Syndicate works on case studies.
  • Case studies.