Introduction to Trading

This course examines physical trading economics in depth. Delegates will learn how to negotiate and cost deals, calculate profitability, charter a ship and examine the contractual aspects of trading. They will make decisions as part of a crude oil and refined product trading team, maximizing profits through an understanding of the economics of trading and the management of inherent price risks.

Additional information

Program Type

Location

Dates

Dates to be announced

$1,500

Who Should Attend

This course will benefit anyone coming into trading from elsewhere in the industry; those in supply and marketing functions looking for a wider understanding of the market; those in oil companies, banks, law firms, accountancy practices, the media, market regulators, financial services, and elsewhere who interface with traders and trading.

Lecture Sessions

Introductory Material

  • Introduction to trading and markets
  • Price reporting
  • Pricing mechanisms

Crude Oil Trading

  • International pricing of crude oils
  • Crude oil trading
  • Dated Brent and Brent Markets

Products Trading

  • Mechanics of trading products
  • Oil Brokering
  • Costings
  • Valuing product quality

Contracts and Trading

  • Negotiating a deal
  • Writing a contract
  • Calculating the profitability of deals
  • Contango and backwardation

Processing

  • Introduction to processing deals

Chartering and Freight

  • Calculating freight costs using worldscale
  • Chartering a ship

Performance and Credit

  • Client / Counterpart risk
  • Payments and credit risk