The world crude oil markets are undergoing a structural change given increasing supplies from the United States. The response of the largest crude oil exporting bloc of countries, the Organization of Petroleum Exporting (OPEC), to these increasing supplies has been to maintain production in the face of depressed demand for crude oil. This has seen crude oil prices in 2015 fall below those in the last few years. But are these large swings in crude oil prices anomalies? Or is this the norm? Is crude oil even a homogenous commodity and if not, what characteristics are important in segregating the different types of crude oil and hence their valuation. This course will provide students with a historical perspective on the crude oil markets, the impact that crude oil’s properties have on its price, crude oil production economics, how policy changes have impacted the demand for crude oil and processing technologies and the role played by logistics and transportation to the cost of crude oil.
Crude oil is processed in a refinery to produce a variety of products, such as transportation fuels, that are referred to as refined products. It is the demand for these refined products that drives the demand for crude oil. Given its import to the global hydrocarbon industry, a structured framework to understanding the refined products markets is warranted. This is the purpose of this course. It is designed to provide participants with an understanding of the characteristics of the refined products, their key areas of use and how environmental concerns have driven refined product specifications. Students will also become conversant with the global demand trends for the major products from the refinery complex, which are the major refining centres across the globe, product trade flows and product logistics and transportation. Given this backdrop of the dynamics of the refined products markets and discussion of refinery technology, the fundamentals of refining economics will be discussed.
Volatility, counterparty exposures, credit requirements, government regulations, unexpected “black swan” events and geopolitics keep traders in a perpetual state of high alert. To formulate an effective risk management strategy today’s front, middle and back office executives must apply a holistic approach that begins with understanding the environment your firm operates in, what risks it faces and how best to measure, monitor and manage them. Our “Trading, Pricing & Risk Management in oil & Gas Markets” course has been designed to enable students to identify, measure and manage risk in its many forms by applying proper tools through disciplined evaluation and decision-making. Our lecturers will walk students through the use of futures, options and swaps in the management of risk with practical hedging examples and course assignments.
What do oil traders and operators actually do? How do they make money? How do you “talk the talk” and “walk the walk” in oil trading? This course prepares students for careers in the petroleum midstream sector with hands-on training, interactive engagement and actual industry cases. The class highlights the basic steps in the execution of commercial transactions, verbal or written agreements, contract administration, vessel charters, nominations, vetting, scheduling, loading, documentation, nomination, delivery, invoicing and claims. The module will emphasize the critical importance of operations, logistics and supply chain management in oil trading organizations.
How can traders, operators and shippers interface effectively to add value? How do top-tier commodity trading firms make profits? What forces drive oil price negotiations and strategies? This advanced module highlights various best practices and trading approaches in modern petroleum markets with case studies, industry examples and hands-on exercises. The module provides detailed insights for front, middle and back office personnel on the functions and roles of oil traders, operators, marketers and shippers. Framing concepts from contract law, game theory, behavioural psychology, risk management manuals and strategic decision-making, students will engage in interactive contract negotiations, tanker charters, tenders and real-time physical and paper trading in a simulated live window trading platform.