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Energy Derivatives Workshop: Classroom

ICE Education, In London
Length
2 days
Length
2 days
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Course description

This workshop is aimed at delegates who wish to gain detailed insight into the characteristics of the most widely traded energy derivative instruments, together with their potential for hedging and risk management. This course covers futures and over-the-counter markets.

Suitability - Who should attend?

This virtual two-day course is recommended for anyone, including junior traders and brokers, who would like to improve his/her knowledge and understanding of energy derivatives and their uses.

  • Oil, gas and electricity dealers
  • Trading, risk management and financial departments of oil, gas and electricity companies
  • Exploration, production, transportation and refining departments of oil and gas companies
  • Energy-producing, supply and distribution companies
  • Government departments dealing with energy issues
  • Major energy consuming businesses

Training Course Content

  • Technology check in to ensure all technology working and that all participants have required access.

Day 1

  • Session 1 Introduction
    • Fundamentals, supply chain, benchmarks, pricing methods
  • Session 2 Brent market
    • Spot market, Forward market, Brent complex
  • Session 3 Future contract
    • ICE Futures Exchange, main functions, contracts, ICE Block
  • Session 4 Spreads 1
    • Time spreads, behaviour, trading the market, calculation
  • Session 5 Spreads 2
    • Arb and crack spread, examples, calculation
  • Session 6 Swaps
    • Introduction, fixed and floating prices, oil product markets

Day 2

  • Session 1 Physical markets
    • Spot and term contracts, BFOE and other Forward markets
  • Session 2 Hedging
    • Example, exercise, basis risk, basis trade
  • Session 3 Brent short term hedge
    • CFD and DFL, example and need for hedging crude
  • Session 4 EFP and EFS trades
    • Understand the process, EFP uses, Triggers, EFS
  • Session 5 Swaps 2
    • Types of swap, oil product benchmarks, hedging decisions
  • Session 6 Market prices
    • Geopolitical factors, supply and demand, USD impact

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ICE Education
5th Floor, Milton Gate, Chiswell Street
EC1Y 4SA London

Intercontinental Exchange - Open Courses in Commodities and Financial Markets

Intercontinental Exchange's diverse markets span futures and options on interest rates, commodities, indexes and FX, as well as equities and equity options. These markets are relied upon by international market participants, along with our post-trade infrastructure. ICE is uniquely positioned...

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