Oil & Gas Trading & Economic Framework

Welcome to this online course on oil markets trading & economics framework.

This training course is designed to provide you with a complete understanding of the physical and financial markets for crude oil and petroleum products.

It is geared towards all personnel in the petroleum or associated industries needing to improve their knowledge and understanding of crude oil and petroleum products trading and pricing mechanisms.

The course uses up-to-date global statistics and is organized into 3 parts :

PART 1 : CRUDE & PETROLEUM PRODUCTS PHYSICAL TRADING

• What is the value of a crude oil ?

• Different types of contracts :

  • Long term

  • Spot

  • Forward

• Main oil markets and their features

• Key benchmark crudes

• The role of the Price Reporting Agencies (PRAs)

• Links between Trading and Shipping

• Products trading

• Main provisions of a sale/purchase contract

PART 2 : EXCHANGES & FUTURES TRADING

• The concept of volatility

• Definition of contract for crude oil and petroleum products

• Exchanges and their organization :

  • NYMEX

  • ICE

• Main Futures Markets

• Hedging principles

• Hedging imperfections and associated risks

• Market structure

  • Contango

  • Backwardation

PART 3 : DERIVATIVES

• Options : principles, basics and characteristics

• Interests and limits of options

• Swaps : principles, basics and characteristics

• Interests and limits of swaps

• Review the different oil trading markets by type of transaction

• Summarize the operation of the physical and financial oil markets

• Review the different types of contracts: long term, spot and forward

• Understand how crude oil and petroleum products are traded

• Understand the pricing mechanism of crude oil and petroleum products

• Analyze the parameters which influence prices of crude oil and prices of petroleum products

• Review the different exchanges and their organization: the cases of NYMEX and ICE

• Comprehend hedging techniques available for protection against fluctuations in prices

• Understand the principle of financial derivative products like Swaps and Options

• All personnel in the petroleum or associated industries needing to improve their knowledge and understanding of crude oil and petroleum products trading and pricing mechanisms
• Energy industry journalists and reporters
• Business men and financiers
• Traders & Brokers