N/A
Free
This 5-day training course 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.
About this course:
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 Reuters trading screens and daily price reports from Platts and Petroleum Argus to manage and maximise the profit of a fictional trading book. The corporate position will be marked to market and reviewed on a daily basis, with comprehensive debriefs studying the consequences of the decisions made.
Who should take this course?
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.
Course overview:
INTRODUCTORY MATERIAL
- Introduction to trading and markets
- Price reporting
- Pricing mechanisms
CRUDE OIL TRADING
- International pricing of crude oils
- Crude oil trading
- Brent / BFOE market
PRODUCTS TRADING
- Mechanics of trading products
- Oil brokering
- Costings
- Comparing alternative outlets
- Arbitrage trading
- Valuing product quality
CONTRACTS AND TRADING
- Negotiating a deal
- Writing a contract
- Calculating the profitability of deals
- Spread trading
- Contango and backwardation
- 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
PERFORMANCE AND CREDIT
- Client/counterpart risk
- Documentation
RISK AND EXPOSURE
- Identifying and minimising risks in trading
- Price exposure
- Separation of price and supply
RISK MANAGEMENT INSTRUMENTS
- Futures markets
- Forward markets
- Swaps and OTC markets
- Introduction to options
- Comparison of instruments
RISK MANAGEMENT TECHNIQUES
- Hedging with futures and swaps
- Basis risk
- Refinery margin management
- Technical analysis
TRADING CONTROLS
- Managing a corporate position and mark to market
If you would like to book please contact the training team for more information.
Contact details
Training Team: webtraining@energyinst.org, +44 (0)20 7467 7178