Mastering Oil Trading Concepts

Course Info

Length: 1 Week

City: Istanbul

Type: In Classroom

Available Dates

  • Feb-24-2025

    Istanbul

  • May-26-2025

    Istanbul

  • Aug-25-2025

    Istanbul

  • Nov-24-2025

    Istanbul

Dates in Other Venues

  • Dec-23-2024

    Singapore

  • Dec-23-2024

    Paris

  • Dec-30-2024

    London

  • Dec-30-2024

    Dubai

  • Feb-17-2025

    London

  • Feb-17-2025

    Dubai

  • Feb-24-2025

    Kuala Lumpur

  • Feb-24-2025

    Paris

  • Feb-24-2025

    Barcelona

  • Feb-24-2025

    Amsterdam

  • Feb-24-2025

    Singapore

  • Mar-31-2025

    London

  • Mar-31-2025

    Dubai

  • May-26-2025

    Dubai

  • May-26-2025

    Barcelona

  • May-26-2025

    London

  • May-26-2025

    Singapore

  • May-26-2025

    Amsterdam

  • May-26-2025

    Paris

  • May-26-2025

    Kuala Lumpur

  • Aug-18-2025

    London

  • Aug-18-2025

    Dubai

  • Aug-25-2025

    Paris

  • Aug-25-2025

    Amsterdam

  • Aug-25-2025

    Barcelona

  • Aug-25-2025

    Kuala Lumpur

  • Aug-25-2025

    Singapore

  • Sep-08-2025

    London

  • Sep-08-2025

    Dubai

  • Nov-03-2025

    London

  • Nov-03-2025

    Dubai

  • Nov-24-2025

    Barcelona

  • Nov-24-2025

    Singapore

  • Nov-24-2025

    Paris

  • Nov-24-2025

    Kuala Lumpur

  • Nov-24-2025

    Amsterdam

Course Details

Course Outline

5 days course

The Basics of Refining Essentials

 

  • Discussing techniques to evaluate different crude oil:
  • Linear programming (LP) models
  • Netback calculations
  • Marginal value
  • Transportation and other logistic considerations

 

  • Analyzing factors affect crude oil quality and the grade of crude differentials
  • Discussing the yields of crude oil for different refinery configurations

  • Understanding how to optimize refinery processes by understanding:
  • Feedstock impact
  • Unit configuration
  • Operating conditions
  • Discussing the economics of product blending:
  • Quality and valuation of different blendstocks
  • Product value evaluation
  • Linear/ non-linear blending calculations
  • Quality giveaway minimization
  • Biofuels blending implications

 

  • Understanding the meaning of arbitrage trading and analyze its opportunities

Oil Pricing Methods & Logistics

 

  • Exploring different methods and formulas to price spot and term contracts:

 

  • OSPs and tenders
  • Discounts, premiums and quality escalators

 

  • Identifying price information sources:
  • Key information sources in different markets
  • Reporting techniques (Platts e-window process)
  • Illiquid market assessment (Dated Brent)

 

  • Strategies to assess illiquid markets
  • Understanding freight costs, shipping economics, and chartering considerations
  • Identifying key areas of delay and its effect
  • Exploring types of storage, including contract terms, costs, and implications of holding inventory

Hedging Principles & Risk Management

 

  • Understanding the purpose of short-term and strategic hedges and how to hedging for future
  • Identifying price exposure and timing critical hedging decisions

 

  • Exploring techniques to manage basis risks:
  • Swaps
  • EFPs

 

  • Understanding Delta hedging technique
  • Understanding the significance of hedging the refinery and how to set its objectives, choices and plan

 

  • Exploring techniques to measure and control trading exposure:
  • Value at risk (VAR)
  • Credit control

Crude Oil Markets

 

  • Understanding crude forward markets and its implications
  • Understanding OTC derivative markets, including their instruments, indices, and settlement rules
  • Identifying the meaning of contango and backwardation and their causes

 

  • Discussing the effect of contango and backwardation on trading behavior:
  • Inventory management
  • Hedging
  • Storage play opportunities

 

  • Exploring different types of financial modelling of oil price behavior

Advanced Trading Strategies & Regulations

 

  • Understanding future exchange and trading platforms
  • Discussing contract and transaction rules in future trading

  • Discussing advanced oil trading techniques:
  • Monetization of physical flexibility
  • Dealing and origination
  • Algorithmics and high-frequency trading

 

  • Recognizing constraints on trading activities:
  • Government regulations
  • Corporate policies
  • Position and market risk limits
  • Credit and counterparty constraints

 

  • Discussing the key ethical behaviors in oil trading
  • Understanding how to maintain regulation compliance of oil trading