Overview of Physical Crude Oil Trading and Operations - CT 

CPE Credits Awarded: 16
Categories: Trading, Derivatives, Hedging and Risk Management, Oil Industry, Oil Supply and Trading

Course Code Date Duration Venue Price Register
CT-BSGP15 14 Sep 2015 2 Days Royal Plaza on Scotts Singapore Country: sg
$ (USD) 2,465.00+7%GST
CT-BLND15 21 Sep 2015 2 Days ETC Venues - Prospero House London Country: gb
£ (GBP)1,215.00+20%VAT
CT-BCAL15 28 Sep 2015 2 Days Calgary, Canada Country: ca
$ (USD)1,625.00+5%GST
CT-ANYC15 09 Nov 2015 2 Days Downtown Conference Center NY Country: us
$ (USD) 1,625.00

5c003d5e591091d484ea3c6e8f6051f1150 150 This course provides an introduction to the trading of physical crude oil. Delegates will gain an understanding of the knowledge possessed by a physical crude oil trader and the steps involved in negotiating a physical crude oil transaction. In addition, delegates will be given an overview of crude oil quality, vessel and pipeline transportation, and the terminology associated with this facet of the petroleum industry. Energy futures contracts and over the counter instruments are also covered in this course offering. There are periodic quizzes and a trading game in the course, and these reinforce the course material.

Includes Web-based Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive a web 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.

Prerequisites

As this is an introductory course, there are no prerequisites.

 

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

This course is designed for those individuals new to the crude trading area and anyone interacting with the crude oil trading personnel in their company. Specifically, operations, mid-office and back office employees would benefit from the material offered in this course. The course assumes no prior crude oil trading experience.

Introduction

  • What is crude oil?

Industry Components

  • Major components of an integrated oil company
  • What does each area do?

Upstream Sector

  • How crude traders interface with upstream
  • Areas where is crude oil produced

Midstream Sector

  • How is crude oil transported?
    • trucks, vessels, and pipelines
  • Locations of crude oil markets
  • Who trades crude oil?
  • Evolution of crude prices

Downstream Sector

  • Definition of refining processes
  • Overview of worldwide refining

Crude Oil Characteristics

  • Major crude oil quality factors
    • gravity, sulfur, pour point, and viscosity
  • The most commonly-traded crudes
  • Synthetic crude and non-conventional crude sources

Crude Oil Pricing

  • Benchmark crudes
  • Major markets where crude is typically traded
  • Term contracts
  • Definition of a spot transaction vs. term deal
  • How are crude prices determined?
  • Netback calculations and GPW
  • Physical markets

Paper Trading

  • Definition of terminology within Paper markets
  • Differentiation of oil futures vs. physical
  • Futures markets locations and specification
  • OTCs vs. futures
  • Who uses futures? – market players and their roles
  • Definition of EFP
  • Brent crude oil traded markets
  • Forwards and Swaps

Reasons For Trading Physical Crude Oil

  • Why do companies trade crude oil?
  • Refinery supply optimization and crude selection
  • System balancing
  • Trading for profit

Influences on Crude Oil Trading Decisions

  • Fundamental analysis
  • Definition of OPPEC and its role
  • Locations of crude reserves and strategic storage
  • Refinery shutdowns
  • Crude inventories

Crude Oil Price Drivers

  • Market structure – contango and backwardation
  • Economic factors that affect supply and demand
  • Geo-political factors
  • Technical analysis
  • Using fundamentals and Technical Analysis together

The Art of the Trade

  • Trader networks and socializing
  • How is a trade actually negotiated?
  • Types of international purchases
  • The terms negotiated in a crude oil deal

Crude Oil Operations, Credit, and Legal

  • LOA definition
  • Vessel chartering
  • Different types of crude oil tankers
  • Worldscale – definition and calculation
  • Demurrage – definition and charges
  • Minimising shipping costs
  • Crude oil pipelines and scheduling
  • Payments for crude oil transactions – credit issues and forms of security
  • The role of lawyers in crude oil deals

Faculty

Course Director

Testimonials

“The course met all my expectations and will help me in my interactions with the business units my IT organization supports. This is a must course for all IT professionals in the oil and gas industry.” A.M., Tesoro

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

UK: (+44) 1865 250521   |   Singapore: (+65) 6837 8030   |   USA: (+1) 713 343 1699

 

Email us at info@oxfordprinceton.com

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