This BTS training course will highlight:

• Crude & petroleum products physical trading 
• Market price strategies
• Concepts in oil trading 
• Petroleum products price setting mechanism 
• Exchanges & futures trading 
• Derivative products swaps and options

At the end of this Introduction to Oil Trading & Price Risk Management training course, you will learn to:

• Review the different oil trading markets by type of transaction
• Review the different types of contracts: long term, spot and forward
• Understand how crude oil and petroleum products are traded
• Understand the pricing mechanism of crude oil and petroleum products
• Comprehend hedging techniques available for protection against fluctuations in prices
• Understand the principle of financial derivatives products like Swaps and Options

It is geared towards all personnel in the petroleum or associated industries needing to improve their knowledge and understanding of crude oil and petroleum product, trading and pricing mechanisms.

This BTS training course is suitable to a wide range of professionals but will greatly benefit:

• All personnel in the petroleum or associated industries needing to improve their knowledge and understanding of crude oil and petroleum products trading and pricing mechanisms
• Petroleum economists
• Oil and Gas business students
• Energy industry journalists and reporters
• Businessmen and financiers
• Traders & Brokers

Participants to this Introduction to Oil Trading & Price Risk Management training course will receive a thorough understanding on the subjects covered by the training course outline with the tutor utilizing a variety of proven adult learning teaching and facilitation techniques. Training course methodology includes PowerPoint presentations short videos, case studies as well as active discussions.

DAY 1

Introduction to Crude Oil: A Finite Resource

• Introduction to Upstream Oil & Gas Industry
• Oil & Gas Reserves, Production, Consumption & Trade
• The Impact of The Shale Industry
• Trends in Carbon Emissions and Carbon Trading
• Basic Refining and Refining Complexity
• Refining Economics 

DAY 2

Market Price

• Different Strategies
• International Oil Trade 
• Anatomy of The Crude Oil Pricing System
• Prices on The Oil Markets
• Hedging – Risk Management 

DAY 3

Introductory Concepts in Oil Trading

• Trading on The Oil Markets
• The Spot Markets
• Spot Crude Oil Prices
• The Brent Market
• Indexing Crude Oil Prices 

DAY 4

Petroleum Products Price Setting Mechanism

• How are Prices Reported?
• The Physical Futures Markets
• The Financial Futures Markets
• The Historical Development of The Petroleum Exchanges
• Futures Contracts
• Pricing Structures: Backwardation and Contango
• The Limitations of The Futures Markets 

DAY 5

Derivative Products: Swaps and Options

• The Definition of An Option
• The Cost of An Option
• The Definition of a Swap
• The Historical Development of The Petroleum Exchanges
• USA / UK/ Singapore

BTS attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration.