International Oil Trading - Advanced Techniques and Strategic Price Risk Management (TR2)
This course covers the advanced trading techniques applicable to the management of price risk in International Oil Trading. Through the medium of a variety of case studies, delegates will learn the techniques involved in trading and how to address day-to-day problems of managing the price risk associated the role of producer, refinery or consumer with an integrated trading position. Much of the work will be carried out in syndicate groups where delegates will learn to develop and manage trading strategies designed to maximise corporate profitability and reduce exposure to losses arising from the price fluctuations.
Who Should Attend
The content of TR2 is such that delegates considering attending TR2 will ideally either be experienced in the basic principles of International Oil Trading or have attended either of the appropriate introductory CPS International Oil Trading courses (TR0 or TR1)
- Personnel who have recently entered trading and need to increase their knowledge of derivatives
- Personnel entering back and mid-room positions, interacting daily with the trading function
- Staff who interface with the trading sector and require a better understanding of trading practice such as management accounting, controllers, treasury or supply functions
- Professionals in associated fields (e.g. legal and banking) who wish to increase their knowledge of practical derivatives used by the oil industry
What You Will Learn
- The structure of the oil markets
- Knowledge of freight costs key to trading
- An overview of the refining process and its influence on the international markets
- Knowledge of product quality key to trading
- How crudes and products are priced
- How and why trading is carried out
- Basic tools available for hedging
- Trading in the forward markets
- The use of swaps and CFDs
- Option theory and the factors affecting option trading
- The management of price risk within trading positions through the application of hedging techniques
- The development and management of successful trading strategies for the producer, refiner and the consumer
- The essentials of constructing purchase/sale contracts and arising exposures