This is an interactive online course with live presentations and open discussions. The class lasts two hours. Participants will share an online Power Point and live white board explanations.
Participants are expected to have a basic knowledge of oil markets and pricing.
Managing price risk is a major part of trading. This course will discuss the key elements in understanding what price risk. We will look at how physical markets typically price crude oil and products and how that exposure can be assessed. We will then discuss how to deal with that risk by using swaps.
What is risk?
Operational, credit, contractual, and legal risks
Financial risk: prices and positions
When is financial risk created?
What is hedging?
Offsetting financial risk
When should you hedge?
Perfect and imperfect hedges: basis risk in the real world
Fundamentals of Swaps
Price Reporting Agencies
Average Prices and Standard References
How does a swap work?
Pricing a Swap
Futures vs. Swaps: are they predictions?
Market Structure: contango and backwardation
Using Swaps to Hedge
Classic oil product swaps
Trading with Swaps
Speculation or not?
Spreads, cracks and arbitrage
The class is interactive and live. Questions are welcomed throughout and web based white boards will be used to demonstrate where required.
Please check your time zone:
@ 9 am in London
@ 12 pm in Dubai
@ 4 pm in Singapore
Course Duration: 2 Hours
2 CPD credits Industry Certificate