Crude Oil Trading and Price Risk Management

Transcription

1 PETROSYNC Synchronize ni Your Petroleum Skills Limited ipad 2 Giveaway! Sign up NOW! Crude Oil Trading and Price Risk Management Maximize Profits and Manage Risk Effectively in a Volatile Market Date: 12th March th March 2012 Location: Singapore PetroSync Distinguished Lecturer David Ford Managing Director Ridgeway Energy Consultancy Ltd Exercises & Interactive Trading Simulation included! TESTIMONIALS OF COMPETENCE Over 20 years of financial experience in the petroleum industry Past Managing Director at International Petroleum Exchange(IPE) Training Ltd Author of An investor s guide to traded options and Mastering exchange traded equity options What leading organizations have said about David s previous masterclass with Petrosync He gives idea in managing risk exposure from different perspectives - Petronas LNG Malaysia Very comprehensive coverage of oil industry. Now I have a better understanding of the Brent cash market, Forward and Futures market - Interoil Singapore David has excellent clarity on the subject and has a very good style of explaining. I am happy to attend this programme - Reliance Industries Global Energy Services Supported by

2 Masterclass Objectives ANALYSE the market performance oil and gas investments and their future outlook LEARN to trade products in the oil and gas market successfully DEVELOP a thorough understanding of the various trading techniques and methods IDENTIFY market risk and learn to control them effectively APPLY practical strategies and technical analysis to mitigate risk factor in energy trading LEVERAGE on energy derivatives to hedge prices and risk exposure Masterclass Overview Masterclass 1: Trading International Crude Oil 12th - 13th March 2012 This intensive and highly interactive two-day course is designed to give delegates a better understand of crude oil trading in a safe environment. Delegates gain exposure, knowledge and understanding of the workings of the world of crude oil trading and is designed for oil & gas traders. The course is a combination of lecture, syndicate work, case studies and a trading game. Masterclass 2: Price Risk Management and Hedging 14th - 16th March 2012 Due to the highly volatile nature of the price of oil, international trading introduces the risk of large unexpected losses. Price risk management is designed to reduce the price risks associated with trading and introduce an element of certainty. This interactive three-day course is designed to guide delegates through the concept of hedging, allowing them to identify price risk and learn how to manage that risk through different financial instruments. Specially Designed for This program is intended for : Energy, Oil & gas, Commodity traders Trading Managers Portfolio & Planning Managers Oil & Gas Equity Analysts Risk Consultants, Risk Managers Credit Risk Analysts Energy Trading Firms Financial, Business & Commercial Analysts Oil & Gas Financial Consultants Oil & Gas Executives in Banking & Corporate Finance IN-HOUSE SOLUTIONS SAVE COST IMPROVE PERFORMANCE REDUCE RISK PetroSync understands that in current economic climate, getting an excellent return on your training investment is critical for all our clients. This excellent training can be conducted exclusively for your organization. The training can be tailored to meet your specific needs at your preferred location and time. We will meet you anywhere around the globe. If you like to know more about this excellent program, please contact Jerry Tay (Conference Director) on or jerry.t@petrosync.com

3 Masterclass 1: Trading International Crude Oil 12th Mar - 13th Mar Day 1-12th March 2012 Trading markets Physical - Spot - Forwards - Term OTC - Swaps - Futures - Options Forward curves OTC vs Cleared Supply and demand issues Crude Oil reserves Production Supply and Consumption Geopolitics and National Oil Companies Storage Exercise: Supply and demand headlines Transportation Tankers World scale Pipelines Exercise: Calculation of freight costs using Worldscale Oil pricing Pricing mechanisms Price exposure Trading simulation Delegates will take the part of a trading department of an integrated oil company selling their equity crude and buying additional cargos to feed one of their two refineries. The simulation increase in speed and complexity as the situations unfold and develop. Delegates are encouraged to take on different roles within the team during the simulation to experience the various functions of a trading department. Day 2-13th March 2012 Crude evaluation and refining Classification and assay Gross product worth (GPW) Simple distillation Cracking Calculating crude values using gross product worth (GPW) Valuing different crudes using spread values from a benchmark price Contracts and trading Market locations and participants Contracts Trading specifications Price quotation Trading limits Settlement and delivery Benchmarks What is a benchmark? What makes a grade a benchmark? Main global benchmarks - WTI - ASCI - Dubai - Brent - Tapis Brent Dated Brent BFOE 21 Day ICE Brent The EFP premium CFD s Bwave Pricing methodology Platts Petroleum Argus Technical analysis Types of charts - Line - Bar - Japanese candlestick - Market profile Support and resistance levels Trends lines Major reversal patterns Exercise: Technical analysis a structural approach

4 Masterclass 2: Price Risk Management and Hedging 14th Mar - 16th Mar 2012 Day 3-14th March 2012 Physical pricing mechanisms Supply and demand Crude valuation Fixed vs. floating vs. EFP Understanding price exposure Long / short Marking to market Pricing structures and correlations - Brent - WTI / ASCI - Dubai Volatility, normal distribution and standard deviation Identification of risk Basic principles Objectives Basis risk, credit risk, operational risk and volumetric risk Measuring and analyzing risk Value-at-Risk (VaR) concept Long and short hedging Contango and backwardation Calculating physical price volatility and the square root of time rule Calculation of physical/derivative price correlation Identification of price risk Futures - the basics Features of futures Expiry cycle Forward curves Clearing Exchange of Futures for Physical Day 5-16th March 2012 Hedging with Swaps Basic structure - Plain vanilla - Who s the buyer, who s the seller - Fixed for floating - Cash flows Different types of swaps - Differential - Participation - Extendable - Double up - Swaption - Prepaid - Margin or crack Pricing - Forward curve - Contango - Backwardation - Futures OTC clearing - Basic principles - ICE - NYMEX - SGX Hedging with swaps Hedging basis risk with CFD/DFL Managing a hedging programme Establishing trading limits Monitoring trading positions Market to market - P&L Portfolio management VaR - Value at Risk Summary and Conclusion Day 4-15th March 2012 Hedging with Futures Basic concepts - Definitions and terminology - Profit and loss - Exercise and delivery Pricing - Cost of carry - Contango - Backwardation - Basis The clearing house - What is a clearing house? - Central counter-party - Margin - Exercise and delivery Exchange of futures for physical/swaps (EFP/EFS) - Increases open interest - Decrease in open interest - No change in open interest Trigger pricing and basis trading - Objectives - Trigger pricing process - What is basis? - Establishing basis differential - Trading the basis Exercise: Hedging with futures with and without basis risk Hedging with Options Basic conceptions - Definition and termination - Exercise and delivery - Rights and obligations Characteristics of options - Risk and reward - Profit and loss profiles Principles of pricing - Options premium - Intrinsic value - Time value - Volatility Exchange Traded Options - Definitions - Calls / Puts OTC Options - American, Asian and European - Caps, floors and collars - Swaptions Options sensitivities - The Greeks - Delta - Gamma - Rho - Theta - Vega Hedging with options as a: - Producer - Consumer - Refiner Volume hedging with options Hedging price with options - Delta hedging

5 PetroSync Distinguished Lecturer David Ford Managing Director Ridgeway Energy Consultancy Ltd Over 20 years of financial experience in the petroleum industry Past Managing Director at International Petroleum Exchange (IPE) Training Ltd Author of An Investor s Guide to Traded Options and Mastering Exchange Traded Equity Derivatives David has over 20 years of financial experience in the petroleum industry. He was Managing Director of IPE Training Ltd, the training subsidiary of the Exchange. David established it in into a worldwide provider of quality energy training courses. David is the author of An Investor s Guide to Traded Options and Mastering Exchange Traded Equity Derivatives and numerous newspaper and magazine articles. After leaving the IPE David set up Ridgeway Energy Consultancy Ltd (REC). Since founding REC David has been involved in a number of international projects in China, Russia, Kazakhstan and Europe covering energy trading and risk management, OTC clearing on commodities, strategy and business organisational issues. David has lectured on energy topics across Europe, Russia, Kazakhstan, Dubai, Singapore, China and USA. He started working in the City of London for the London Traded Options Market (LTOM) a division of the London Stock Exchange. He moved to Wise Speke stockbrokers later. Intercontinental Exchange (ICE) Futures Europe (previously IPE) The International Petroleum Exchange (IPE) founded in 1980 was one of the world's largest energy futures and options exchanges. It handled futures contracts, options on fuel oil, natural gas, electricity, coal contracts as well as its leading commodity, Brent Crude. Acquired by ICE in 2001 and renamed ICE Futures Europe, it is now ICE's London-based, regulated futures exchange for global energy markets. ICE Futures Europe lists the leading global crude oil benchmarks and sees half of the trade in the world's crude oil and refined product futures in its markets. ICE also offers the leading European emissions futures market. Participants in more than 70 countries have access to a range of futures and options contracts to manage risk around-the-clock, in a transparent and liquid marketplace. David s Selected Client List: CNPC (China National Petroleum Corporation) UNIPEC (China International United Petroleum & Chemicals) BP JOGMEC (Japan Oil, Gas and Metals National Corporation) Gazprom ICE Futures Europe CSRC (China Securities Regulatory Commission) BHP Billiton BNP Paribas Credit Suisse Fortis Bank WHY YOU SHOULD ATTEND PETROSYNC S EVENTS To ensure that all objectives of the course matches yours, all PetroSync programs are developed after intensive and extensive research within the industry PetroSync programs focus on your immediate working issues to ensure that you are able to apply and deliver immediate results in real work situations Application and implementation of industry knowledge and experience are the drivers for our course design, not theoretical academic lectures PetroSync training focuses on practical interactive learning tools and techniques including case studies, group discussions, scenarios, simulations, practical exercises and knowledge assessments during the course. Invest a small amount of your time to prepare before attending the course to ensure maximum learning PetroSync follows a rigorous selection process to ensure that all expert trainers have first-hand, up-to-date and practical knowledge and are leaders of their respective industrial discipline

6 Course Details Title : Crude Oil Trading and Price Risk Management Date : 12th March th March 2012 Location : Singapore Get a free gift when you register and pay for the full Standard Price 5 days masterclass before early bird deadline! * To enjoy the promotion & discount offer, payment must be made before deadline * For 5 or more delegates, please inquire for more attractive package. * Prices include lunches, refreshmentes and materials. Promotion & discount cannot be combined with other promotional offers. * Important: Please note that registration without payment will incur a SGD 200 administration fee. 1st Delegate Name Direct Line Number: Job Title: Head of Department: 2nd Delegate Name Direct Line Number: Job Title: Head of Department: 3rd Delegate Name Direct Line Number: Job Title: INVESTMENT PACKAGES Please circle the package that you are attending! Investment Package Deadline MASTERCLASS 1 : 2 DAYS Head of Department: DELEGATES DETAILS INVOICE DETAILS Mr Department: Department: Department: Attention Invoice to: Direct Line Number: Fax: Company: Industry : Address: Postcode: Country: Please note: - Indicate if you have already registered by Phone Fax Web - If you have not received an acknowledgement before the training, please call us to confirm your booking. - Photocopy this form to register multiple delegates. PAYMENT METHODS By Direct Transfer : Please quote invoice number(s) on remittance advice PetroSync LLP Bank details: Account Name: PetroSync LLP Bank Number: 7144 Branch Code: 001 Account No: Name of Correspondent Bank : Standard Chartered Bank, 6 Battery Road, Singapore SWIFT Code of Correspondent Bank: SCBLSGSGXXX Mrs Ms Dr Others Mrs Ms Dr Others All bank charges to be borne by payer. Please ensure that PetroSync LLP receives the full invoiced amount. Mr Mr MASTERCLASS 2: 3 DAYS Standard Price 9th Mar 2012 SGD $ 2,995 SGD $ 3,995 Early Bird Offer 13th Feb 2012 SGD $ 2,795 SGD $ 3,795 Group Discount (3 or more Delegates) 9th Mar 2012 FULL MASTERCLASS 1 & 2 : 5 DAYS SGD $ 5,995 SGD $ 5,995 10% discount for groups of 3 registering from the same organization at the same time Mrs Ms Dr Others PROGRAMME CONSULTANT Name : Victor media@petrosync.com Phone : Fax : TERMS AND CONDITIONS DISCLAIMER Please note that trainers and topics were confirmed at the time of publishing; however, PetroSync may necessitate substitutions, alterations or cancellations of the trainers or topics. As such, PetroSync reserves the right to change or cancel any part of its published programme due to unforeseen circumstances. Any substitutions or alterations will be updated on our web page as soon as possible. DATA PROTECTION The information you provide will be safeguarded by PetroSync that may be used to keep you informed of relevant products and services. As an international group we may transfer your data on a global basis for the purpose indicated above. If you do not want us to share your information with other reputable companies, please tick this box CANCELLATION POLICY You may substitute delegates at any time as long as reasonable advance notice is given to PetroSync. For any cancellation received in writing not less than fourteen (14) working days prior to the training course, you will receive credit voucher less a SGD $200 administration fee and any related bank or credit card charges. Delegates who cancel less than fourteen (14) working days of the training course, or who do not attend the course, are liable to pay the full course fee and no refunds will be granted. In the event that PetroSync cancels or postpones an event for any reason and that the delegate is unable or unwilling to attend in on the rescheduled date, you will receive a credit voucher for 100% of the contract fee paid. You may use this credit voucher for another PetroSync to be mutually agreed with PetroSync, which must occur within a year from the date of postponement. PetroSync is not responsible for any loss or damage as a result of the cancellation policy. PetroSync will assume no liability whatsoever in the event this event is cancelled, rescheduled or postponed due to any Act of God, fire, act of government or state, war, civil commotion, insurrection, embargo, industrial action, or any other reason beyond management control. DETAILS Please accept our apologies for mail or that is incorrectly addressed. Please us at registration@petrosync.com and inform us of any incorrect details. We will amend them accordingly. CHARGES & FEE(s) - For Payment by Direct TelegraphicTransfer, client has to bear both local and oversea bank charges. - For credit card payment, there is additional 4% credit card processsing fee. By Credit Card : Please debit my credit card: Visa MasterCard Card Number: AMEX Security Code: Expiry Date: Name printed on card: I agree to PetroSync s payment terms and cancellation policy. Signature : PAYMENT TERMS : Payment is due in full at the time of registration. Full payment is mandatory for event attendance.