Course Objectives

This highly interactive and intensive crude oil & petroleum products and pricing mechanism course will provide the attendees with a comprehensive understanding and knowledge base of the international physical oil trading business from the perspective of both the trader and the supply analyst


Who Should Attend?

Oil Company personnel, Analysts, Management Accountants, Marketers and operators


Prerequisites

None


Course Overview

• Overview of world petroleum products markets
• Petroleum product supply and demand, Issues and projections for the future
• Underling pricing mechanism, Fixed and Floating prices, Contango & backwardation
• Petroleum product markets, The regional markets
• Forward paper contracts
• Long term oil markets: participants, market liquidity, contractual issues, using long term derivatives
• Purpose of hedging. Hedging instruments. Hedging strategies
• Pure future and options. The futures market: speculation and arbitrage
• Petroleum products purchases and sales contract negation and documentation
• Operations and logistics
• Ship nomination and documentation. Inspection and book-outs. Shipping operations
• Terminals trans-shipments and storage
• Back office operations including wharfage, demurrage, scheduling
• Shipping contracts negotiation
• Petroleum products carriers and factors in carrier types selection
• Security issues in shipment (security of the products and terrorists concerns)
• Safety issues in product shipping
• Petroleum Products Trading Terminology
• The who, what, and why of product hedging
• Hedging venues – futures, options and derivatives
• Regulated exchanges, types or price risk- absolute risk, credit & performance risk
• Margin requirements, Contract settlement, volatility
• Forward curve – contango and backwardation, crack spreads
• Futures codes, Designing a risk management program
• How to use a few simple hedging techniques
• Charter parties, Laytime and Demurrage
• Charter party, types of clauses, concepts of laytime, Demurrage, vessels freight rates
• Arbitration, litigation, vessels vetting and performance
• Marine custody transfer, petroleum measurement and loss control
• Oil measurement, quantification of oil volumes, methods of loss evaluation
• Reduction of exposure, Recovery oil loss, Inspection/survey of marine petroleum cargoes
• Operations and safety issues
• Strategic Planning and Economics


Course Materials

Notes, handouts and exercise materials