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

Date Register by Date Duration Venue Price Register
26 Jan 2017 23 Dec 2016 2 Days Calgary TELUS Convention Centre Country: ca
$ (USD)1,625.00+5%GST
06 Feb 2017 6 Jan 2017 2 Days London, UK Country: gb
£ (GBP)1,215.00+20%VAT
27 Feb 2017 27 Jan 2017 2 Days Houston, TX Country: us
$ (USD) 1,625.00
30 Mar 2017 3 Mar 2017 2 Days Singapore, Singapore Country: sg
$ (USD) 2,465.00+7%GST
12 Jun 2017 12 May 2017 2 Days New York City, NY Country: us
$ (USD) 1,625.00
17 Jul 2017 16 Jun 2017 2 Days Houston, TX Country: us
$ (USD) 1,625.00
07 Aug 2017 7 Jul 2017 2 Days Cape Town, South Africa Country: za
£ 1,395.00TAX
11 Sep 2017 11 Aug 2017 2 Days Singapore, Singapore Country: sg
$ (USD) 2,465.00+7%GST
18 Sep 2017 18 Aug 2017 2 Days Calgary TELUS Convention Centre Country: ca
$ (USD)1,625.00+5%GST
25 Sep 2017 25 Aug 2017 2 Days London, UK Country: gb
£ (GBP)1,215.00+20%VAT

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.

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.

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