Course Overview
This comprehensive course delivers a deep dive into the global crude oil and refined products markets, exploring the full value chain from production and sales to trading, pricing, marketing, and risk management. It equips participants with the tools and knowledge needed to understand market mechanisms, pricing benchmarks, trading strategies, and contract structures. Special emphasis is placed on commercial optimization, hedging techniques, and the integration of risk management into sales and trading operations.
Course Objectives
By the end of this course, participants will be able to:
- Understand the structure of global crude oil and refined products markets.
- Analyze pricing mechanisms and market benchmarks (e.g., Brent, WTI, Platts).
- Structure effective sales and marketing strategies for different products and markets.
- Navigate physical and paper trading operations.
- Manage price and credit risk through derivative instruments and trading controls.
- Interpret and negotiate key commercial terms in contracts and offtake agreements.
Who Should Attend
- Crude Oil and Product Traders
- Sales and Marketing Managers in Oil & Gas
- Refinery Commercial and Supply Managers
- Risk Managers and Derivatives Analysts
- Contract Negotiators and Legal Advisors
- Finance, Treasury, and Investment Professionals
Course Outline
Fundamentals of Crude Oil and Refined Products
- Global Supply Chains: Upstream to Downstream
- Types and Grades of Crude Oil and Refined Products
- Quality Specifications and Value Drivers (API, Sulphur, Octane, etc.)
- Logistics and Transportation: Pipelines, Terminals, Shipping
Market Structure and Pricing
- Crude Oil and Product Pricing Benchmarks (Brent, WTI, Dubai, Platts)
- Price Reporting Agencies (PRAs) and Methodologies
- Spot vs. Term Contracts
- Price Differentials and Arbitrage Opportunities
- Introduction to Market Fundamentals and Technical Analysis
Sales and Marketing Strategies
- Customer Segmentation and Market Mapping
- Strategic Sales Planning and Demand Forecasting
- Product Blending and Yield Optimization
- Marketing in Regional and Global Contexts (Asia, Europe, MENA, etc.)
- Tendering and Bidding Strategies in NOC/IOC Contracts
Physical and Paper Trading
- Physical Trading: Delivery Terms (Incoterms), Scheduling, Laytime
- Paper Trading: Futures, Options, Swaps
- Trading Strategies: Arbitrage, Speculation, Hedging
- Exchanges and Platforms: ICE, NYMEX, OTC Markets
- Trading Operations and Back-Office Coordination
Risk Management in Trading and Marketing
- Identifying and Measuring Market Risk: Price, Credit, Operational
- Hedging with Derivatives: Forwards, Swaps, Options
- Managing Basis Risk, Location Risk, and Credit Risk
- Developing and Managing Risk Policies and Trading Limits
- Introduction to Value at Risk (VaR), Greeks, and P&L Attribution
Commercial Contracts and Deal Structuring
- Key Commercial Terms: Pricing, Lifting, Payment, Quality
- Contract Types: CIF, FOB, Delivered Ex-Ship (DES), Tolling Agreements
- Offtake Agreements, Term Sheets, and Spot Deals
- Contract Risk: Legal, Operational, Credit and Performance Risk
- Negotiation Strategies and Case Studies