The course focuses on the key markets, pricing and the mechanisms involved in oil trading. Aspects of the various exposures encountered in trading are covered together with hedging and price risk management techniques. Syndicate exercises will address each skill required. Over the course, syndicate groups will manage their own company positions in live trading situations.
Course Objectives
- Comprehend the Brent Market and its influence on international pricing
- Position management with hedging tools
- The structure of purchase/sales contracts including exposures and transaction costs
- Price risk management
- Developing successful trading strategies
- The use of trading instruments to capture the market
- Use of Freight Forwards to manage freight risk
- Working the arbitrage
- Trading structured positions and live markets
It is recommended that delegates should have attended “International Oil Supply, Transportation, Refining and Trading” (SP1) or have working knowledge of all of the subjects covered in that course.
Not sure if you have the appropriate experience? Click here to test yourself on the knowledge necessary for this course.
Course Content
Crude Oil and Product Markets
- Why trade?
- Supply/demand
- How the markets work
Shipping and Freight
- Freight exposure and freight forwards
Pricing
- Price reporting
- Pricing mechanisms
- Price risk
Contracts
- Issues and problems
Price Risk and Risk Management
- Summary of markets (Physical, Forwards, Futures, Swaps, Options)
- Understanding long and short positions
- Introduction to hedging tools
- Basis risk
Product Trading
- Light and Middle Distillate Trading
- Fuel Oil Trading
- Developing successful trading strategies
- World product markets and pricing
- Locations, time and quality arbitrages
- Futures – features of the key futures markets
- Delivery
Crude Trading
- Developing successful trading strategies
- Negotiating term deals
- Other risks and exposures
- Arbitrage price risk management
- Payment mechanisms, letters of credit
- Counterparty selection
Introduction to Advanced Instruments
- The EFP
- Swaps & Options
- Spreads and basis trading
Case Studies and Exercises Include:
- Price exposure
- Arbitrage
- Basis risk
- Negotiating a deal
- Freight Hedging
- Option valuation
- Contract Risks
- Managing ongoing positions
- Trading the live market
Who Should Attend?
- Personnel who are entering the trading arena
- Oil company staff who interface with the oil trading sector and require a better understanding of trading practice, such as operations, accounting, financial control, treasury, supply or production function
- Those in the legal and banking fields who want a better understanding of trading practice
Duration: 5 Days (Monday-Friday)
Course Fees (VAT Included)
Lagos/PH/Abuja: ₦ 483,750.00
UK/US/Ghana/Dubai: $4,837.50
- Award of Certificate.
- Professional Training Materials
REGISTRATION PROCEDURE
- Go to “Register Now” button and fill the form and send it. You will get “message sent” if it is successful.
- You will get confirmation of your registration within two working days when you will be asked to go ahead and make payment.
- Go ahead and make payment.
- Send your name, phone number, email address, training location, amount paid to info@sbtpetroleum.com.ng OR SMS to +2349098171437.
- Upon confirmation of your payment, an electronic receipt will be sent to your mail.
- A joining instruction will be sent to you at least 72 hours before the training date an time.
- Looking forward to training date to commence your training. However, if a need to change the dates of the training arises, you will be notified immediately. This may be due to unavailability of the instructors or due to unavoidable logistic challenges.
ACCOUNT DETAILS
NAIRA ACCOUNT
BANK: ECOBANK
ACCOUNT NAME: SBT PETROLEUM GEOSCIENCE LIMITED
ACCOUNT NUMBER: 1613062169
BRANCH: Chevron Branch
SORT CODE: 050150340
DOLLAR ACCOUNT
BANK: ECOBANK
ACCOUNT NAME: SBT PETROLEUM GEOSCIENCE LIMITED
ACCOUNT NUMBER: 1613062183
BRANCH: Chevron Branch
SORT CODE: 050150340