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.
Public :
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 :Skilled
Prerequisite :
Bachelor’s degree +3 and/or a minimum 3 years of working experience in downstream or finance.
Course Content
OIL MARKETS FUNDAMENTALS
-
Duration : 0.25 Day
Energy resources, demand and supply.
Oil producing and consuming countries, OPEC, international oil companies: constraints and strategies.
General features of trading and shipping : freight rate, worldscale, chartering contracts
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
-
Duration : 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: for a refiner, a producer, a marketer, a consumer
Hedging imperfections, basis risk.
Market structure (contango, backwardation).
Case studies.
DERIVATIVES & RISK MANAGEMENT
-
Duration : 0.75 Day
Options: principles, basics and characteristics.
Interests and limits of options.
Swaps: principles, basics and characteristics.
Interests and limits of swaps
Clearing OTC transactions.
Options: pricing and sensitivities.
Options strategies: caps, floors, collars.
How to account for the risk: Mark to Market and Value-At-Risk
Learning Objectives
Attendees will be able to implement the following skills:
Analyze the parameters which influence prices of crude oil and prices of petroleum products and the ways of evaluating price risk,
Review the different oil trading markets by type of transaction and diffrenciate the different derivatives,
Comprehend hedging techniques available for protection against fluctuations in prices while understanding the importance of maritime transport costs in oil supply economics.
Ways & Means
Syndicate works on case studies.
Case studies.
Learning assessment
Participants will be evaluated during the training through exercises and case studies.
More
Coordinator :IFP Training instructors, with expertise in the field and trained in modern teaching methods adapted to the specific needs of learners from the professional world.
To French entities : IFP Training is referenced to DataDock ; you may contact your OPCO about potential funding.
Please contact our disabled persons referent to check the accessibility of this training program : referent.handicap@ifptraining.com
IFPT Account
