This course offers a comprehensive overview of the fundamentals and structure of the international trading of crude oil and refined products and highlights the importance of shipping activities as a key part of the associated operating procedures. It will guide attendees to make the most cost-effective decisions in areas under their control. Participants gain a thorough understanding of the formation and structure of an oil trading contract, and the importance of selecting the most cost-effective shipping for transportation. They will also learn how this interacts with the refinery and refinery margins, oil stock management, oil blending and the importance of maintaining a focus on quality considerations. The interaction between shipping, oil operations and traders, is discussed so as to optimize the operational factors that can affect the overall economics and so avoid profitability leakage. They learn the impact of price exposure and price risk management on the traders’ decisions and the knock-on effects for shipping, operations, and the essential areas of documentation and legal issues surrounding trading. They also gain the skills to use Worldscale to charter a ship.
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This course will be very beneficial to operations staff, including those new to the supply, trading, shipping and operating aspects of downstream oil, with a focus on understanding the importance of fully integrated activities on trading profitability. In addition to traders, shipping and oil operators, attendees can embrace back- and middle-office personnel such as finance, banking, and others supporting the front-office. Additionally, those managing trading and operational functions wishing to eliminate profit leakage and those upstream personnel seeking a better understanding of how profit is achieved in the downstream, will also benefit from participating in this course.
Group Discussions
This program is composed of lectures by experienced instructors and participation in exercises and group discussions designed to bring learning to life in a realistic and applied manner. This finely balanced mix of case studies, lectures and discussions helps reinforce the learning. Current market data is used where appropriate to ensure that participants learn to react to changing market conditions. Exercises are performed in teams with comprehensive debriefs to review the consequences of decisions made.
