Download Trading Oil on International Markets

ENERGY PROGRAMS
Trading Oil on International Markets
Program Objectives
This five-day program provides delegates with a comprehensive understanding of the economics of trading and the management of
inherent price risks. Delegates will learn how to negotiate and cost deals, calculate profitability, charter a ship through a broker, and
examine the legal and operational aspects of trading. They will also gain the skills to identify and manage risk by using futures, forwards,
and over-the-counter markets.
During the practical exercises, delegates work as part of a trading team and make decisions using real-time information and prices from
Thomson Reuters trading screens and daily price reports from Platts and Petroleum Argus to manage and maximize the profit of a fictional
trading book. Invincible’s corporate position will be marked to market and reviewed on a daily basis, with comprehensive debriefs studying
the consequences of the decisions made.
Key Benefits
Instructional Format
Provides you with an introduction to crude oil and refined
product trading and price risk management
Covers all aspects of a traded deal: negotiation, economics,
freight and other costs, profit and loss calculations
Introduces price exposure and all the price risk management
instruments including futures, swaps, forwards, and options
Looks at hedging, market structure, and trading control
Who Should Attend
The learning format consists of a carefully designed, practical
“workshop” form of learning that incorporates a finely crafted
balance of role plays, exercises, lectures, and discussions using
oil prices and markets to illustrate and enhance the learning of
concepts and practices.
Program Schedule
This program will begin with registration at 8:15 AM on Monday
morning and will end on Friday at Lunch time. Daily sessions
are expected to be completed by 6:00 PM and social events are
arranged for participants on Monday and Thursday evenings.
This course will benefit those coming into trading from elsewhere
in the industry; those in supply and marketing functions
looking for a wider understanding of the market; those in oil
companies, banks, law firms, accountancy practices, the media,
and elsewhere who interface with traders and trading; and those
moving into oil markets from the financial markets or elsewhere.
IHRDC UNITED KINGDOM
Westport House, Bentley, Farnham, Surrey GU10 5HY UK
Tel: +44 (0) 1420.22862
Fax: +44 (0) 1420.22863
Email: [email protected]
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PROGRAM CONTENT
Introductory Material
Performance and Credit
Introduction to Trading and Markets
Client / Counterpart Risk
Price Reporting
Documentation
Pricing Mechanisms
Risk and Exposure
Crude Oil Trading
Identifying and Minimizing Risks in Trading
International Pricing of Crude Oils
Price Exposure
Crude Oil Trading
Separation of Price and Supply
Brent / BFOE Market
Risk Management Instruments
Products Trading
Futures Markets
Mechanics of Trading Products
Forward Markets
Oil Brokering
Swaps and OTC Markets
Costings
Introduction to Options
Comparing Alternative Outlets
Comparison of Instruments
Arbitrage Trading
Valuing Product Quality
Risk Management Techniques
Hedging with Futures and Swaps
Contracts and Trading
Basis Risk
Negotiating a Deal
Refinery Margin Management
Writing a Contract
Technical Analysis
Calculating the Profitability of Deals
Spread Trading
Contango and Backwardation
Trading Controls
Managing a Corporate Position and Mark to Market
Exchange for Physical (EFP)
Legal Issues
Tendering
Preparing and Evaluating a Tender
Chartering and Freight
Calculating Freight Costs using Worldscale
Chartering a Ship
Calculating Demurrage
Freight Exposure and Swaps
IHRDC Energy Programs
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PROGRAM TIMETABLE
09.00
09.10
09.40
10.00
10.30
11.20
11.50
12.30
13.00
14.00
15.00
15.30
16.00
16.45
17.45
DAY ONE
Introduction to the Course
Oil Markets
Price Reporting
Coffee
Mechanics of Trading
Introduction to Exposure
Corporate Position – Exercise 1
Debrief – Exercise 1
Lunch
Mechanics of Trading 2 and Chartering
Freight Costs
Tea
Platts and the Pricing Window
Capricorn – Exercise 2.1
Day Close
08:45
09.25
10.15
10.20
10.50
11.30
12.30
13.00
14.00
14.30
15.15
16.00
16.20
16.40
17.00
19.30
DAY TWO
Risks in Trading
Futures Markets
Introduction to Syndicate Trading
Coffee and Syndicate Trading
Hedging
Futures – Exercise 3 and Debrief
Spread Trading
Lunch
Introduction to Swaps
Crude Oil Pricing and Forward Markets
Crude Oil – Exercise 4
Tea and Syndicate Trading
Debrief – Exercise 4
Costing Alternatives
Product Trading Negotiation – Exercise 5
Day Close
08.45
09.30
10.15
11.00
11.25
11:50
12.20
13.00
14.00
15.30
16.00
17.30
DAY FOUR
Technical Analysis
Trading / Refining Interface
Crude Oil – Exercise 8
Coffee
Debrief – Exercise 8
Clearing and Comparison of Instruments
Performance and Credit
Lunch
A Special Deal
Tea
View from a Market Maker
Day Close
09.00
10.00
11.00
11.15
11.30
12.15
12.30
DAY FIVE
LNG
Capricorn – Exercise 2.2
Coffee
Debrief – Exercise 2
Legal Aspects
Managing the Corporate Position and Close-Out
Summary and Close
LEGEND
Lecture Sessions
08:45
10.00
10.45
11.00
11.15
12.20
12.30
14.45
15.30
15.50
16.40
17.15
17.30
DAY THREE
Debrief – Exercise 5
Introduction to Options
Coffee and Syndicate Trading
Tendering
Tendering – Exercise 6
Photograph
Lunch
Gasoline Play including EFPs
Tea and Syndicate Trading
Gasoline – Exercise 7 and Debrief
Marking to Market
Debrief – Exercise 6
Day Close
Practical Exercises
Breaks