Principles of International Oil Trading (TR0)
This course covers the basic principles of international oil trading, and the allied fields of supply, transportation and refining. Through the medium of a case study, delegates will address day-to-day problems, and will understand the relevant commercial driving forces in this area. Much of the work will be carried out in syndicate groups where teams will simulate real in-company practice, working with other delegates drawn from a wide background of disciplines in the industry.
Who Should Attend
- Personnel who are entering the international trading market
- Staff who interface with the trading sector and require a better understanding of trading practice
- Professional personnel inside and outside oil companies interfacing with supply, refining, trading and transportation functions and who need an overview of this sector such as legal, banking, insurance, finance and production.
What You Will Learn
- The structure of the oil markets - physical and paper
- Knowledge of freight costs key to trading
- How to evaluate spot tanker freight costs
- How oil and tanker contacts are structured
- How a refinery is configured
- Key points on product quality
- How key specifications are met
- How crudes and products are priced
- How to value crude oil based on product market prices and netbacks
- How and why trading is carried out
- How to execute a trade
- The essentials of constructing purchase/sale contracts
- Contract exposures and costs
- The use of hedging
- Basic tools available for hedging and position management