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About
Physical Oil Trading & Contracts is an interactive online course with live presentations and open discussions. Participants will share an online PowerPoint and live whiteboard explanations.
*Participants are expected to have a very basic knowledge of oil markets.
The course will cover physical oil trading deals and how traders look at contracts and clauses, terms and conditions and market practices.
The goal of all traders is to make money or minimize losses; the first step is to create a deal. All the terms of the contract contribute to profits or losses.
Physical Oil Trading and Contracts course will look at a few of those key terms and clauses. As we look at each subject, we will be asking how a trader uses it and how it can help make money.
The course includes exercises which will be done as a group or in breakout rooms as smaller teams. Questions and Discussions are welcome throughout the course.
Physical Oil Trading & Contracts is a Virtual Course delivered through Zoom.
*Participants are expected to have a very basic knowledge of oil markets.
The course will cover physical oil trading deals and how traders look at contracts and clauses, terms and conditions and market practices.
The goal of all traders is to make money or minimize losses; the first step is to create a deal. All the terms of the contract contribute to profits or losses.
Physical Oil Trading and Contracts course will look at a few of those key terms and clauses. As we look at each subject, we will be asking how a trader uses it and how it can help make money.
The course includes exercises which will be done as a group or in breakout rooms as smaller teams. Questions and Discussions are welcome throughout the course.
Physical Oil Trading & Contracts is a Virtual Course delivered through Zoom.
- Starts at: 8AM London | 12PM Dubai | 4PM Singapore
- Ends at: 1PM London | 5PM Dubai | 9PM Singapore
What will you Learn?
- Trading
- Fundamentals of the Oil Industry
- How does the market work?
- Contracts
- Timing and Pricing Oil
- Market Structure: Contango and Backwardation
- Fundamentals of Moving Oil
- Contracts in Shipping: the Charter Party
- The Price of Freight
Agenda
1) Oil Trading
– What is trading?
– Who are oil traders and what do they do?
– What is a broker? Why do we use them?
– Market organization: geography and specialization
2) Fundamentals of the Oil Industry
– Exploration and Production: What comes out of the ground?
– Refining: are refineries just black boxes?
– Quick look at refining
– Refining margins and cracks
3) How does the market work?
– How do term and spot contracts change the market?
– Understanding spot deals: Platts and the Market
– Who uses which type of contract?
– FOB vs. Delivered
– Inspection and inspectors:
– Measuring quantity: mass and volume
– Testing quality: typicals, actuals and guarantees
– Test methods
– Legal and contractual value of results
4) Contracts:
– Why do they exist? Who needs them?
– Clauses and terms: understanding how contracts make money
– Key clauses:
– Incoterms
– Quality and quantity
– Delivering timing
– Credit and payment
– Legal clauses: court, arbitration, Force Majeure, GT&C’s
– Disputes and resolutions: best solutions in practice
– What are the risks in physical trading?
5) Timing and Pricing Oil
– What are benchmarks and price references?
– Choosing the right benchmark.
– Price making and price taking: Who sets the price of oil?
– Price Reporting Agencies and the Market Price
– Setting pricing dates: Does timing the pricing matter?
– DiƯerentials and premiums: Why do they exist and how do they work?
– Market structure: how contango and backwardation can change the premium
– Fixed prices, floating prices, EFP and Trigger Prices
– Brent Crude Oil: Dated Brent and WTI
– OSP’s and market prices
– What is trading?
– Who are oil traders and what do they do?
– What is a broker? Why do we use them?
– Market organization: geography and specialization
2) Fundamentals of the Oil Industry
– Exploration and Production: What comes out of the ground?
– Refining: are refineries just black boxes?
– Quick look at refining
– Refining margins and cracks
3) How does the market work?
– How do term and spot contracts change the market?
– Understanding spot deals: Platts and the Market
– Who uses which type of contract?
– FOB vs. Delivered
– Inspection and inspectors:
– Measuring quantity: mass and volume
– Testing quality: typicals, actuals and guarantees
– Test methods
– Legal and contractual value of results
4) Contracts:
– Why do they exist? Who needs them?
– Clauses and terms: understanding how contracts make money
– Key clauses:
– Incoterms
– Quality and quantity
– Delivering timing
– Credit and payment
– Legal clauses: court, arbitration, Force Majeure, GT&C’s
– Disputes and resolutions: best solutions in practice
– What are the risks in physical trading?
5) Timing and Pricing Oil
– What are benchmarks and price references?
– Choosing the right benchmark.
– Price making and price taking: Who sets the price of oil?
– Price Reporting Agencies and the Market Price
– Setting pricing dates: Does timing the pricing matter?
– DiƯerentials and premiums: Why do they exist and how do they work?
– Market structure: how contango and backwardation can change the premium
– Fixed prices, floating prices, EFP and Trigger Prices
– Brent Crude Oil: Dated Brent and WTI
– OSP’s and market prices
1) Fundamentals of moving oil
– Why do traders need or want ships? Buying FOB and buying delivered
– Types of ships in the market:
– Tankers, dry bulk, cargo and container vessels.
– Clean versus Dirty
– Sizes and configurations of oil tankers: key measurements
– Vessel suitability and vetting
– Vessel quality: Is it a “good” ship?
– Compatibility: last three cargoes
– Inspection: SIRE system
2) Contracts in Shipping: the Charter Party
– Spot charter, time charter, owning, contracts of aƯreightment
– Key terms for negotiating a freight deal
– Timing: laycan
– Quantity
– Price of shipping
– “GT&C’s” in shipping: charterparty forms
– Laycan, laydays, laytime and canceling
– Subjects and fixing: how deals are done
– Responsibilities: Owner vs. Charterer
3) The Price of Freight
– Calculating freight costs: the owner’s perspective
– Lump sum, $/mt and Worldscale
– Contractual quantities: minimums and overage
– A look at Worldscale:
– Worldscale Tanker and Flat Rates
– Worldscale multipliers and commercial rates
– Calculating freight with Worldscale
– Demurrage: when the meter runs and runs and runs
– What drives the freight market?
– Why do traders need or want ships? Buying FOB and buying delivered
– Types of ships in the market:
– Tankers, dry bulk, cargo and container vessels.
– Clean versus Dirty
– Sizes and configurations of oil tankers: key measurements
– Vessel suitability and vetting
– Vessel quality: Is it a “good” ship?
– Compatibility: last three cargoes
– Inspection: SIRE system
2) Contracts in Shipping: the Charter Party
– Spot charter, time charter, owning, contracts of aƯreightment
– Key terms for negotiating a freight deal
– Timing: laycan
– Quantity
– Price of shipping
– “GT&C’s” in shipping: charterparty forms
– Laycan, laydays, laytime and canceling
– Subjects and fixing: how deals are done
– Responsibilities: Owner vs. Charterer
3) The Price of Freight
– Calculating freight costs: the owner’s perspective
– Lump sum, $/mt and Worldscale
– Contractual quantities: minimums and overage
– A look at Worldscale:
– Worldscale Tanker and Flat Rates
– Worldscale multipliers and commercial rates
– Calculating freight with Worldscale
– Demurrage: when the meter runs and runs and runs
– What drives the freight market?
Participants
Oil and product traders
Refiners
Economists
Analysts portfolio managers
Risk managers
Operation Managers
Brokers
Related front
Middle and back office staff
Practical Information
2-Day Full Course – Physical Oil Trading & Contracts – 1150 GBP
Please note: UK-based companies are subject to 20% UK VAT
Please note: UK-based companies are subject to 20% UK VAT
The course fee covers:
– Participation in 8 hour Live Virtual Course
– The Course materials in e-version
– Industry Certificate of IBH: 8 CPD hours
– Participation in 8 hour Live Virtual Course
– The Course materials in e-version
– Industry Certificate of IBH: 8 CPD hours
Payment options are available in two forms: bank transfer and card payment.
Zoom Delivery
Testimonials
This was a really engaging, content-packed course
"This was a really engaging, content-packed course. Chris drew on his cexperience as a former practitioner and shared tons of real industry cases- many tied directly to day-to-day work - which was incredibly helpful. It also cleared up a lot of basic concepts I’d either never really thought about or had partly misunderstood. Getting those fundamentals right really saves you from taking pointless detours. Thank you!"
Crude Oil Operator
Petrochina International (Pan-America) Trading S.A.
Certificate
Demonstrate your new skills and gain a step up in your career with globally recognised CPD certifications.
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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.
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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.
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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.
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Chris
Chris has 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, a top trading company, 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.
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.
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