Understanding Crude Oil Marketing and Trading
About the Course
This comprehensive course in Oil Trading and Markets is designed to provide a deep understanding of the complexities and dynamics of the international oil markets.
Course Content
- Understanding International Oil Markets: Recognizing market drivers, principal players, and factors influencing crude and product prices.
- Trading Techniques: Learning a range of trading techniques and gaining insight into price exposure and risk management tools.
- Practical Application: Applying gained knowledge through specialized exercises and live trading scenarios.
- Contract Terms and Negotiation: Understanding contract terms and conditions, negotiating, and collaborating with diverse professionals from various organizations and cultures.
Course Modules Overview:
- Evolution of International Oil Pricing System: Covers historical changes, emergence of pricing systems, benchmarks, market-related pricing, and price discovery mechanisms.
- Trading Physical Crude Oil and Logistics: Explores trading fundamentals, production sharing contracts, transportation agreements, lifting agreements, sales and purchase agreements, and freight contracts.
- Dissection of Crude Oil Price: Understanding benchmark crudes, absolute value determination, futures markets, hedging theories, and speculation.
- Oil Price Formula – Time Differential: Focuses on arbitrage, swap contracts, setting prices, CFDs, value fixation, and term contract pricing.
- Oil Price Formula – Grade Differential: Covers crude oil grades, quality, discounts, refining assays, product worth, location, and freight.
- Price Risk Management – Hedging Crude Oil Price: Examines risk types, strategic and operational hedging, risk management considerations, correlations, and basis risk.
Key Learning Outcomes:
– Understanding market mechanisms, trading techniques, and risk management strategies in the oil industry.
– Gaining practical experience through exercises and live market trading simulations.
– Developing negotiation skills and understanding diverse contract terms and conditions.
Course Focus:
– Analyzing the historical evolution of oil pricing systems.
– Understanding the intricacies of trading physical crude oil and associated logistics.
– Dissecting the components influencing crude oil pricing.
– Emphasizing risk management strategies, including hedging crude oil price fluctuations.
This course aims to equip participants with the knowledge, skills, and practical experience necessary to navigate the complex world of oil trading, market dynamics, and risk management within the industry.
