Course description
Live Online Course: Crude Oil Physical Cargo Risk Management
This live online course contains 12 hours of learning content, including over 3 hours of trading simulations via Ignite, our industry-renowned physical commodity trading simulator. The course explains:
- How physical crude oil is priced and traded
- Geographical arbitrage, the associated price risks and how best to manage them
- How you manage price risks on crude oil cargoes with different pricing mechanisms
- Why settlement prices are important, what pricing windows are and how they work.
The interactive E-Learning modules should each take 1 hour to complete and forms a pre-read, along with some trading simulation tutorials before attending the live sessions in our virtual classroom.
The live session will last 2 hours and is hosted by a former trader who will talk through the trading concept and how it is applied in the real world (not theoretically). During the session, you will play a complex trading simulation to help you understand and apply the trading concept.
You will receive access to the trading simulator 1 week prior to the first live session. You will be able to play a 10-minute trader training tutorial an unlimited amount of times. The tutorial will reinforce your understanding and allow you to see how it's applied.
Course Schedule:
29-30 October 2024
Day 1: 9-11am and 1-3pm SGT
Day 2: 9-11am and 1-3pm SGT
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Upcoming start dates
Suitability - Who should attend?
Suitable for individuals working in organisations such as:
Trading companies, Banks, Brokers, Oil producers, Consumers, Refiners, Distribution companies, Government and Associated organisations.
Including roles in:
Back office, Accounts, Financial operations, Middle office, Trade control, Analysts and Front office, Juniors, Managers and Operations.
You should have an understanding of crude oil paper markets.
Outcome / Qualification etc.
By completing/passing this course, you will attain the certificate TwoTwoFive Certificate Crude Oil and awarded 12 CPD points.
Training Course Content
- Price Exposures
- What is physical cargo trading
- Physical delivery terms
- Factors that influence supply
- Factors that influence demand
- Crude oil quality
- Contractual considerations
- Price reporting agencies - who are they and what they do
- Explains floating prices and benchmark prices
- What is crude oil differential trading
- Arbitrage
- Explains physical arbitrage
- Different aspects of crude oil
- Voyage chartering
- Time charter
- Bareboat charter
- Contract of affreightment
- Worldscale - what it is and how it works
- Operational costs of arbitrage
- Financial risks
- When traders arbitrage
- Netback calculation
- Hedging
- Why hedge
- Basis risk
- Swaps as hedging instruments
- Types of hedging
- A detailed example of hedging a fixed price cargoes
- A detailed example of hedging a floating price cargoes
- Operational impact on pricing
- Settlement Prices and Pricing Windows
- What are settlement prices and why are they important
- How settlement prices are determined
- Price reporting agency settlement assessment methods explained
- The history of market on close (MOC) and pricing window's
- Fundamental principles of MOC
- Pros and cons of pricing windows
- When is MOC and how long it lasts
- A MOC timeline
- Pricing window methodologies
- A pricing window in action
- Hedging in the pricing window
Course delivery details
This Live Online Course is delivered live online, on the set dates and times stated.
Why choose TwoTwoFive
Practice trading with IGNITE trading simulator
1,000s of individuals from 100s of companies trained over the last 10 years
Our trainers have a combined 100+ years of trading experience