This intensive and interactive course focuses on the price risks involved in trading oil on the international markets. The course identifies the price risks involved and the use of exchange traded and OTC instruments in managing risk. You will compare the advantages and disadvantages of futures and OTC instruments and review the different trading procedures available and the profiles of the different hedgers in the market.
Review of pricing mechanisms
- Fixed, floating, EFP’s
- Physical vs forward vs futures
- The value of the differential
- When does price risk begin?
- Actively managing price risk
- What is hedging?
- Futures vs. swaps vs. options
Hedging with exchange traded products
- As a producer
- As a refiner
- As a consumer
Hedging with OTC products
- The underlying
- Rateable exposure
- Which instrument to use when and why?
Who is this course for?
Anyone who is affected by the changes in the international price of oil
Oil industry personnel working in supply, trading, risk management, refining, finance, transport, exploration and production
Oil trading and distribution companies
Energy-related government departments and regulators
Purchasing, planning, and finance departments in major energy consumers
Bankers, accountants, auditors and others associated with oil companies and oil financing