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About
This intensive five-day programme builds on the Oil Trader Academy foundation, taking participants deep into advanced trading concepts and real-world applications. The first two days focus on analytical and practical foundations—covering market structure, time spreads, arbitrage mechanics, blending, market making, hedging strategies, crude and product correlations, and the Brent complex—through structured case studies and decision-based exercises drawn from expert trading experience.
The following three days immerse participants in highly interactive, computer-based trading simulations that replicate complex market scenarios. These simulations reinforce theory through hands-on practice, enabling participants to apply advanced strategies in storage optimisation, time spreads, customer flow, chartering, freight trading, and options. Led by seasoned former traders, this academy oƯers a unique opportunity to master oil trading in a dynamic, experiential format.
The following three days immerse participants in highly interactive, computer-based trading simulations that replicate complex market scenarios. These simulations reinforce theory through hands-on practice, enabling participants to apply advanced strategies in storage optimisation, time spreads, customer flow, chartering, freight trading, and options. Led by seasoned former traders, this academy oƯers a unique opportunity to master oil trading in a dynamic, experiential format.
What will you Learn?
- Develop a deeper understanding of global oil market structures and dynamics
- Apply advanced hedging strategies using derivatives, spreads, and correlations
- Evaluate and execute physical arbitrage opportunities, considering freight economics and operational constraints
- Construct and manage professional spread positions across arbitrage, intramarket, and crack spreads
- Optimise blending decisions and product quality management
- Hedge freight exposure eƯectively through FFAs
- Navigate the Brent complex and apply option theory strategically
- Gain hands-on experience with derivatives, physical markets, and storage optimisation
- Apply theory through real-life trading simulations and exercises
Key features:
- Five-day advanced programme combining theory and practice
- Immersive simulations in real-world trading scenarios
- Interactive, experiential learning led by former traders
- Practical, hands-on approach with immediate application of concepts
- Access to on-demand supplementary learning content
Agenda
Session 1: Principles of Hedging in Practice
* Spread trades
Time Spreads & Market Structure
Scenario Exercise: Time Spreads from Fundamentals
Session 2: Physical Arbitrage in Oil Trading
Arbitrage: Concept & Mechanics
* Payment terms
* Freight, demurrage and operational constraints
Group Exercise: Diesel Arbitrage Singapore → ARA
Session 3: Spread Trading & Cross-Market Relationships
Spread Trading Foundations
Arbitrage Spreads
* MOPS Diesel vs NWE Diesel
* Nymex RBOB vs Eurobob
* WTI / Dubai
* NWE Naphtha vs Nymex RBOB
Intramarket Spreads
Cracks & Refining Margins
Time Spreads:
- Hedging as oƯsetting price risk with derivatives
- Equal and opposite – defining the correct hedge
- Liquidity vs relevancy: choosing the right instrument
- Alternatives to a perfect hedge:
* Spread trades
- Correlation: how prices are related and why correlations matter for risk management
Time Spreads & Market Structure
- Review of market structure: flat, backwardation, contango – Front-to-back positions
- Basis risk and speculation when trading time spreads
Scenario Exercise: Time Spreads from Fundamentals
Session 2: Physical Arbitrage in Oil Trading
Arbitrage: Concept & Mechanics
- Definition and logic of moving oil between regions
- Value components of an arbitrage:
* Payment terms
* Freight, demurrage and operational constraints
- Identifying where and when arbitrage can be locked in
Group Exercise: Diesel Arbitrage Singapore → ARA
Session 3: Spread Trading & Cross-Market Relationships
Spread Trading Foundations
- Correlation scale: –1 to +1 and what it means for trading strategies
- Types of spreads and when to use them
Arbitrage Spreads
- Same / similar underlying:
* MOPS Diesel vs NWE Diesel
* Nymex RBOB vs Eurobob
- Similar / diƯerent underlying:
* WTI / Dubai
* NWE Naphtha vs Nymex RBOB
Intramarket Spreads
- Same / similar underlying: *Diesel / Gasoil, Jet / Kero *LSFO / HSFO, 180 / 380 CST *95 / 92 octane, FOB / CIF
- DiƯerent underlying: *Regrade, Jet DiƯ *Eurobob / Naphtha *Gasoil / Fuel
- Cracks: Product Price minus Crude Price *MOPS Diesel – Dubai, HO-WTI, 3:2:1, etc *Refining margins
- Time Spreads: anticipation of market structure *”Front-to-Back” *View on S&D in front of market *Long term structural view
Cracks & Refining Margins
- Definition of crack spreads: product price minus crude price – Examples and structures: MOPS Diesel – Dubai, HO–WTI, Refining Margins
Time Spreads:
- Using time spreads to anticipate market structure (“front-to-back”)
- Forming views on supply & demand in front of the curve
- Long-term structural views
Session 4: Market Making: Role & Techniques
* More informal market makers in oil markets (and how they can “flake”)
Session 5: Blending: Technical & Economic Perspectives
Blending Fundamentals
*Non-linear: properties like viscosity and flash point
*Metals, sulphur, colour, benzene, FAME, flash, etc.
*Non-linearity of yields and acceptable ranges
Short Case Discussion: Compatibility & Stability
Session 6: Freight Hedging with FFAs Freight Hedging Exercise
*Discuss basis and liquidity risk
Session 7: Brent Complex
*CFDs, DFLs
*EFPs: exchanging futures for physical
Session 8: Options & Option Pricing for Oil Traders
*Delta, Gamma, Theta, and volatility
*Black-Scholes Option Pricing Model:
Physical Options in Oil Trading
- Providing bids and oƯers in most market conditions
- How to make money on the bid/oƯer spread
- Having an “axe”: positioning and bias on bid vs oƯer
- DiƯerences between:
* More informal market makers in oil markets (and how they can “flake”)
Session 5: Blending: Technical & Economic Perspectives
Blending Fundamentals
- Linear vs non-linear blending
*Non-linear: properties like viscosity and flash point
- Linear example: blending sulphur for diesel or fuel
- Non-linear viscosity examples
- When no formula exists: flash point and the need for dilution judgement
- Goal: achieve the final spec in the cheapest way possible
- Comparing blending options (e.g. high-vis vs mid-vis vs kero)
- Other spec limits:
*Metals, sulphur, colour, benzene, FAME, flash, etc.
- Blending crude oil:
*Non-linearity of yields and acceptable ranges
Short Case Discussion: Compatibility & Stability
Session 6: Freight Hedging with FFAs Freight Hedging Exercise
- Delegates work through a simple route-hedging example: *Identify exposure from a fixture
*Discuss basis and liquidity risk
Session 7: Brent Complex
- Brent as a brand and benchmark
- Brent Physical Market: BFOETW cargoes
- Brent forwards (BFOE/BFOET) and paper vs physical
- Brent futures: pricing vs Dated Brent
- Brent derivatives:
*CFDs, DFLs
*EFPs: exchanging futures for physical
Session 8: Options & Option Pricing for Oil Traders
- What is an option? Calls & puts
- Vanilla vs exotic structures (high-level)
- Basics of pricing:
*Delta, Gamma, Theta, and volatility
*Black-Scholes Option Pricing Model:
Physical Options in Oil Trading
- Creating options via deal structure:
- Identifying embedded optionality in cargo and contract design
- How to monetise or protect optionality with derivatives
Opening Welcome and Introduction
Time Spreads Review
Time Spreads – SIMULATION
Simulation Review
Crude Derivatives & Market Making
Market-making – SIMULATION
Simulation Review
Physical Trading
Distillate Contracts – SIMULATION PART 1
Close
- Introductions, course objectives and contents.
Time Spreads Review
- A concise overview of trading concepts, highlighting various tradable spreads and emphasizing market structure and time spreads.
Time Spreads – SIMULATION
- The delegate receives market news and converts it into RBOB time spread positions while managing their value-at-risk trading limit.
Simulation Review
- The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Crude Derivatives & Market Making
- This session oƯers a comprehensive overview of the oil market, focusing on derivatives, as well as the global supply and demand for oil.
- It introduces the concept of a market maker, who acts as a liquidity provider by quoting prices for both buying and selling.
- The session also discusses the associated risks and hedging techniques.
- Practical examples of trading arrangements are provided to contextualise the strategies and operational considerations faced by traders in this space.
Market-making – SIMULATION
- The delegate is either a speculator or a market maker.
- They trade futures and fixed-price cargoes (similar to forward contracts) to add liquidity and engage in entrepreneurial trading for profit.
Simulation Review
- The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Physical Trading
- Arbitrage, Hedging and Blending Review
- Overview of arbitrage mechanics, hedging, and cargo pricing.
- This session covers the characteristics of blending, both linear and non-linear, and outlines the considerations necessary for conducting these activities.
Distillate Contracts – SIMULATION PART 1
- As a distillate trader, the delegate begins with inherited global physical positions and access to a biodiesel blending facility.
- Facilitators guide the simulation to allow everyone to place trades, identify opportunities, and mitigate losses and risks.
- Participants will engage in chartering vessels, blending, trading freight futures (FFAs), and interacting with the open market and other delegates.
Close
- Review & Wrap Up.
Distillate Contracts – SIMULATION PART 2
Simulation Review
Backwardation/Contango review, Correlations etc
Storage – SIMULATION
Simulation Review
– The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Customer Flow SIMULATION PART 1
Customer Flow – SIMULATION PART 2
Simulation Review
Close
- As a distillate trader, the delegate begins with inherited global physical positions and access to a biodiesel blending facility.
- Participants will engage in chartering vessels, blending, trading freight futures (FFAs), and interacting with the open market and other delegates.
Simulation Review
- The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Backwardation/Contango review, Correlations etc
- Review of market structure and the contango play concept.
- Introduction to hedging, liquidity issues, alternatives and the use of correlations.
Storage – SIMULATION
- As a crude oil trader, the delegate identifies contango play opportunities based on 1, 2, 3, 6 and 12-month tankage lease period economics.
- Uses Brent time spreads to hedge and speculatively monetise the market structure.
Simulation Review
– The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Customer Flow SIMULATION PART 1
- As a distillate trader, the delegate begins with inherited global physical positions and must manage the associated hedging when cargoes price, charter vessels and FFAs.
- Delegates navigate liquidity traps and utilize the most beneficial derivatives for risk mitigation and value addition.
Customer Flow – SIMULATION PART 2
- Continuation of the physical portfolio management simulation
Simulation Review
- The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Close
- Review & Wrap Up.
Brent Complex
Settlement Prices and Pricing Windows
Pricing Window SIMULATION
Freight Optimisation and Trading
Chartering and Freight Trading SIMULATION
Simulation Review
Option Theory Review
Physical Portfolio modelled as options SIMULATION
Course Close
– Overall Course Review & Wrap Up
- The session outlines the key components of the Brent Complex, including ICE Brent futures, BFOETM cash contracts, Platts Dated Brent, and CFD/DFL swaps.
- Explains how these instruments are interconnected and how prices are derived using methods such as – – Dated-to-Front-Line and Exchange of Futures for Physicals (EFPs).
Settlement Prices and Pricing Windows
- Details how settlement prices are determined, emphasising the role of the S&P Global Platts pricing window and the Market-on-Close (MOC) methodology.
- Highlights the importance of settlement prices and various types of contract settlements.
Pricing Window SIMULATION
- As crude traders, the delegates enter the physical pricing window with opposing positions to set the price as they bid or oƯer.
Freight Optimisation and Trading
- Overview of key aspects of arbitrage and how chartering, freight, and operations teams create value through close collaboration with trading teams.
Chartering and Freight Trading SIMULATION
- As part of a chartering team, delegates use their market view on freight rates to speculate on FFAs and decide when best to charter vessels.
Simulation Review
- The TwoTwoFive facilitators will highlight the key market drivers and learnings from the simulation, encouraging the sharing of trade ideas and strategies.
Option Theory Review
- Review of oil financial options, covering types, terminology, payoƯ structures, and the Greeks (Delta, Gamma, Theta, Vega, Rho).
- Explains how to manage physical cargo portfolios as real-world options and calculate intrinsic and extrinsic value.
Physical Portfolio modelled as options SIMULATION
- Delegates identify physical options in potential cargo arbitrage and develop models to determine value.
- Utilises derivatives to capitalise on market volatility until the point of deciding whether to load the cargo.
Course Close
– Overall Course Review & Wrap Up
Participants
Physical and Derivative Oil Traders
Market Analysts and Economists
Risk Managers
Portfolio Managers
Brokers
Operations Specialists
Practical Information
Course Price: £5,995.00
Please note: UK-based companies are subject to 20% UK VAT
Group booking discounts are available. Please contact us (office@ibhouse.net) for more information**
** For same company bookings when booked at the same time
Please note: UK-based companies are subject to 20% UK VAT
Group booking discounts are available. Please contact us (office@ibhouse.net) for more information**
** For same company bookings when booked at the same time
Delegate Rate includes:
- Participation in the course
- Lunches and coffee breaks during the programme
- The course materials in hard copy and on USB device
- Up to 40 CPD credits Internationally Recognised Certificate of the IBH and ICE Education
- Visa support (if needed)
- Social programme
Bank transfer / Card payment
ICE Education: Sancroft, Rose Street, Paternoster Square, London EC4M 7DQ (Second Floor)
For your accommodation needs near ICE Education, we recommend the following hotels:
For reservations and enquiries, please contact us via email at office@ibhouse.net.
- Hyatt Regency London Blackfriars (5*)
- Leonardo Royal London St Paul's (4*)
- Lost Property St Pauls London, Curio Collection By Hilton (4*)
- Club Quarters Hotel St. Paul’s, London (4*)
For reservations and enquiries, please contact us via email at office@ibhouse.net.
Certificate
Demonstrate your new skills and gain a step up in your career with globally recognised CPD certifications.
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- Online: Choose the course you wish to register: Click the "REGISTER NOW" button in the course page, complete the form and click submit.
- Email: Send us your course details with the delegates information at office@ibhouse.net
- Telephone: Please call us on our Tel No: +44 (0) 207 183 4507 or Mob No: +44 7932 572866 to reserve your seats.
For corporate fees and group registration, please send your query to office@ibhouse.net
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- We will send you the invoice within 48 hours of receipt of registration. If you do not received your invoice within this time, please send us an email office@ibhouse.net
- We will send you the confirmation by email within 24 hours after you registration.
- We will send you the confirmation by email within 24 hours after you registration.
Yes. Please send the full name, position and company name of new participant 48 hours before course date.
If you notify International Business House in writing or via email up to 30 days before the start date of the course, you will receive a full refund less an administration fee of 100£ of the course fee. In addition if you are unable to attend, the following cancellation charges will apply for written notice received:
If you are unable to attend a course, you are welcome to provide a delegate substitution, up to 24 hours prior to the course at no extra charge.
If you wish to transfer to a different course a 10% admin charge will be made if the transfer occurs between 10-29 days before the course.
If you fail to attend the course on which you are booked and have not given prior notice to International Business House then the course fee will remain payable in full.
This cancellation policy is necessary owing to the strict limitation on attendance numbers. IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised 30 days before the course
- 14-29 days before the course: 50%.
- 1-14 days before: 100%.
If you are unable to attend a course, you are welcome to provide a delegate substitution, up to 24 hours prior to the course at no extra charge.
If you wish to transfer to a different course a 10% admin charge will be made if the transfer occurs between 10-29 days before the course.
If you fail to attend the course on which you are booked and have not given prior notice to International Business House then the course fee will remain payable in full.
This cancellation policy is necessary owing to the strict limitation on attendance numbers. IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised 30 days before the course
IBH reserves the right to amend or cancel any course, course times, dates or published prices. Changes to course prices, times and dates will be advised before the course start date and any course already paid in full will not be subject to the increased price.
IBH proved delegates with visa support letters once payment has been received.
Please send us to office@ibhouse.net the following information:
If you registered with accommodation IBH will also provide you with hotel booking confirmation. For more information about visa procedure please visit our website or call us +44 (0) 207 183 45 07. Should your visa application be declined, we will provide a full refund of the payment.
Please send us to office@ibhouse.net the following information:
- Your copy of passport
- Company name
- Position
If you registered with accommodation IBH will also provide you with hotel booking confirmation. For more information about visa procedure please visit our website or call us +44 (0) 207 183 45 07. Should your visa application be declined, we will provide a full refund of the payment.
Yes. Any of our open professional excellence courses can be run in-house to meet your company's specific needs. For more information please click here
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Chris
He traded oil and energy in Europe, Africa, the Middle East and Asia during a career that spanned eighteen years.
He has worked for an oil major Total, a top trading company Sempra Energy Trading (Singapore), and investment banks. He has extensive experience in supply and trading for refining systems as well as the challenges of running proprietary physical trading books in Europe, Africa, and Asia.
His experience was rounded out with several years of trading derivatives for investment banks in the Asia-Pacific region. Since leaving trading in 2008 has taught finance and trading at top French business schools, presented corporate training in commodities and energy in France and abroad, and consulted with top European companies on trading and contract arbitration.
He is bilingual in French and English.
He has worked for an oil major Total, a top trading company Sempra Energy Trading (Singapore), and investment banks. He has extensive experience in supply and trading for refining systems as well as the challenges of running proprietary physical trading books in Europe, Africa, and Asia.
His experience was rounded out with several years of trading derivatives for investment banks in the Asia-Pacific region. Since leaving trading in 2008 has taught finance and trading at top French business schools, presented corporate training in commodities and energy in France and abroad, and consulted with top European companies on trading and contract arbitration.
He is bilingual in French and English.
Steve D.
Steve has 25 years of energy trading experience, including roles at BP, LG&E, and Barclays. He traded natural gas, electricity, and crude oil before becoming BP’s Director of Learning & Development, where he created the Trader Training School and global customer programs. Today, Steve continues to deliver courses that combine practical trading expertise with innovative learning approaches.
Steve H.
Steve oƯers over 40 years of commercial experience in oil markets, including leadership roles at Shell, Glencore, Vitol, and BP. He managed complex supply chains and pioneered crude processing contracts for BP’s refining system. Since 2012, Steve has focused on graduate recruitment and training, sharing his deep market knowledge to help professionals thrive in global energy trading.
Stefan
Stefan has extensive experience from his trading career at BP, where he traded derivatives and North Sea crude before leading fuel oil trading across Europe and the USA. He joined BP after graduating from Cambridge University. During his front-line trading career, he traded product derivatives, and both paper and physical Crude Oil. Then became Head of Fuel Oil Trading for Europe and the USA. He was also deeply involved in trader selection, training, and mentoring—work that inspired him to co-found TwoTwoFive in 2011.
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