International Oil Trading and Pricing - TR1 

CPE Credits Awarded: 40
Categories: Trading, Derivatives, Hedging and Risk Management, Oil Industry, Oil Supply and Trading

Course Code Date Duration Venue Price Register
TPS Open date - Not scheduled. Please enquire.

Gold Course

This course covers the basic principles of oil trading and the markets. Through a variety of specific exercises, delegates will learn the techniques involved in trading and how to address day-to-day problems.

After reviewing the background of supply, refining and transportation, the course focuses on the key markets, pricing and the mechanisms involved in trading. Aspects of the various exposures encountered in trading are covered together with an introduction to hedging and price risk management. Syndicate exercises will address each skill required. Over the week, in a continuous theme case study, syndicate groups will manage their own company positions of production, refinery supply, product purchase/disposal and speculative trading, while reacting to new positions generated and changing market prices which simulate a live situation. In parallel to this, delegates will have the opportunity to trade the live markets.

It is recommended that delegates should have attended "International Oil Supply, Transportation, Refining and Trading" (SP1) or have working knowledge of the subjects covered in that course.

What you will learn

  • The structure of the oil markets and pricing
  • Keys to trading: product quality, freight costs and refining processes
  • Comprehend the Brent Market and its influence on international pricing
  • Position management with basic 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

Manager’s Return on Investment

Upon completion of this course your employees will understand:

  • A full understanding of the international oil markets, the market drivers and principal players, and the factors in price formation for crude and products.
  • Knowledge of a full range of trading techniques; in depth understanding of price exposure and the various instruments which can be used for dealing with price, credit and shipping risk.
  • The opportunity for practical application of the knowledge gained through specially designed exercises, alongside a continuous structured case study and trading on the live markets.
  • A detailed appreciation of contract terms and conditions, together with the opportunity to negotiate and work with other delegates from a large range of organisations and cultures.
  • Recourse to the knowledge and experience of a world-class faculty and visiting lecturers.

Do you have a question or enquiry regarding this course?

Please contact your local sales team:

Asia Pacific Europe, Middle East, Africa, Central & South America North America

  • 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 functions
  • Those in the legal and banking fields who want a better understanding of trading practice

Not sure if you have the appropriate experience? Click here to test yourself on the knowledge necessary for this course.


  • Terms used
  • Units used

Crude Oil and Product Markets

  • Why trade?
  • Supply/demand
  • How the markets work

Shipping and Freight

  • Freight and Worldscale
  • Charter party main terms
  • Charter negotiation
  • Laytime and Demurrage
  • Tanker characteristics
  • Freight exposure and freight forwards


  • Products, key qualities
  • Overview of processes
  • Yields and netbacks


  • Price reporting
  • Pricing mechanisms
  • Price risk


  • Details and costs of delivery modes – FOB, CFR, CIF, DES etc
  • Outline structure and clauses
  • Issues and problems

Price Risk and Risk Management

  • Summary of markets (Physical, Forwards, Futures, Swaps)
  • Understanding long and short positions
  • Introduction to hedging tools
  • Basis risk

Product Trading

  • Making a sale
  • The role of the broker
  • Developing successful trading strategies
  • World product markets and pricing
  • Capturing the arbitrage
  • Product specs and quality
  • Implied values of quality
  • Intermediate component valuation
  • Futures - features of the key futures markets
  • Volume, open interest and margins
  • Delivery
  • ADP, EFP

Crude Trading

  • The world crude oil markets
  • Market fundamentals
  • Developing successful trading strategies
  • Negotiating term deals
  • Other risks and exposures
  • Bills of lading and other documents
  • Payment mechanisms, letters of credit
  • Counterparty selection
  • Inspection and losses
  • Insurance disputes claims

Introduction to Advanced Instruments

  • CFDs and swaps
  • Options
  • Spreads and basis trading

Case Studies and Exercises Include:

  • GPW, freight and netback
  • Blending and value
  • Geographic Arbitrage
  • Hedging and basis risk
  • Negotiating a term crude oil deal
  • Freight Hedging
  • Managing ongoing positions
  • Contract Risks
  • Introduction to options
  • Trading the live market


Robin A Burley is principal consultant with Kennet Oil Logistics, a company established in 1990 providing expertise in the international supply, trading and transportation sector. During his 30 years experience in the oil industry he has worked with BP including Marine and Supply Departments, and Gulf Oil including Trading and Transportation, Refining and Marketing functions. Besides the day-to-day management and negotiation of oil supply, trading and transportation deals, he has been involved in a variety of oil logistics projects throughout the world. He has lived in the USA, Europe and the Middle East, and is a contributing author to the Oil Trading Manual (pub. Woodhead 1995).


“Thought the course was great, not just for the content learned but also from a networking aspect & gaining an understanding of how other companies work and also meeting people from all areas of the oil industry.” C.C., Chevron

If you have attended a past course please provide us with some feedback.

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