Fundamentals of Oil Trading for Non Traders

This course provides delegates with an overview of the downstream oil trading business. It has been structured for those new to the industry or those transitioning from other parts of an established business. Delegates will be introduced to the downstream oil supply chain and learn how to make the most cost-effective decisions to optimize profitability. Exercises, using current pricing data, will demonstrate the effect that prices and freight rates have on decisions and how profit can be controlled. Delegates will benefit from comprehensive debriefs and discussions of the decisions made throughout the course.

By participating in this course, delegates will understand the fundamentals of oil refining, stock management, oil blending, the importance of quality considerations and operational factors that will have an effect on profitability. They will learn the impact of price exposure and price risk management on oil trades as well as legal issues surrounding trading. Delegates will also gain skills on freight activities as used in oil trading.

Additional information

Program Type

Location

Dates

Dates to be announced

$1,140

Who Should Attend

This course has been designed for those new to the oil industry or new to oil trading, as it provides a comprehensive overview of oil purchases and sales. It will benefit both new intakes, and those transitioning from other aspects of the organization such as back- and middle-office personnel including finance, banking, shipping and others supporting the front office.

Lecture Sessions

Introduction to The Oil Supply Chain

  • Understanding Physical Markets
  • Price Reporting
  • Product Distribution

Quantity and Quality Measurements and Oil Stocks

  • Crude Oil Considerations
  • Refined Product Considerations
  • Blending Activities
  • Storage and Stock Management

Basic Trading Structure Mechanics of Trading

  • Trading Costs
  • TradingProfit Sensitivity

Shipping and Chartering

  • Tankers and Chartering
  • Freight Costs and Worldscale
  • Documentation Requirements
  • Impact of Demurrage

Performance and Credit

  • Client / Counterpart Risk Documentation
  • Credit Assessment

Risk, Exposure, and Their Management

  • Risks in Trading Activities
  • Basics of Price Exposure
  • Concept of Hedging
  • Risk Management Tools

Contracts

  • Interpretation of Contracts
  • Legal Issues

Control Mechanisms

  • Controls and Authorities
  • Deal Conclusion Procedures