Course description
Oil Trading Orientation is a three-day instructor-led course presented by the energy training experts at Mennta Energy Solutions. This workshop is ideal for non-traders wishing to know more about the world of oil trading, or for delegates who are at the very beginning of an oil trading. Delegates will learn the terminology and key building blocks of knowledge for crude oil and petroleum product trading. They will also receive a first-hand perspective of what a trader's job involves, through competitive team trading simulations focusing on different aspects of trading and risk management. Topics explored include crude oil quality, product refining, blending and specifications, market fundamentals, technical analysis, key trading strategies, pricing mechanisms, derivatives trading, risk management and the mechanics of trading and operations.
Includes Online Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive an online voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.
Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.
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Suitability
Class delegates include anyone who needs to know more about oil trading - everyone from support staff, analysts, accountants and management in the areas of trading, supply, risk management, credit, finance, contracts, IT, operations, transportation and storage.
Content
- Crude oil quality and characteristics
- Crude oil market sectors and trading regions
- Crude oil pricing and netback valuation
- Spot, term and forward markets
- Benchmark crudes and the Brent and WTI markets
- Purposes of oil trading
- Key trading strategies
- Spread trading
- Market fundamentals
- Supply and demand trends
- Imports, exports and trade flows
- Inventories
- Paper and derivatives markets
- Futures
- Exchange of Futures for Physical
- Exchange
- traded options
- Swaps and Basis Swaps
- OTC options
- Risk management, exposure and hedging
- VAR and measurement of risk
- Tactical hedging with futures
- Hedging with options
- Hedging with swaps and basis swaps
- Basis risk
- Operations and marine, pipeline, road and rail transportation logistics
- Mechanics of trading, contracts and negotiations
- Technical analysis
- Key refining processes
- Product blending and specifications
- Major trading patterns and locations
- Refinery economics and trends in refining
- Refined product consumption patterns and trends
- Key value drivers in product markets
- Product trading strategies
- Price differentials and arbitrage
- Refining economics
- Storage plays
- Forward curves, backwardation and contango
During the course, delegates get hands on experience of many aspects of trading through team exercises and trading simulations. These include:
- Competitive crude oil trading simulation with supply and speculative trading requirements to meet in a fast-moving, news-driven market
- Valuation and ranking of crude oils based on quality and netbacks
- Competitive products trading simulation with arbitrage and storage play strategies
- Fast-paced competitive technical trading simulation
- Tactical hedging of cargo trades using derivatives and paper markets
- Competitive hedging strategy simulation
- Team-based deal negotiation exercise