CRUDE OIL TRADING & PRICE RISK MANAGEMENT

Transcription

1 PETROSYNC S ACCOUNTING & FINANCE SERIES CRUDE OIL TRADING & PRICE RISK MANAGEMENT Your Key To Maximize Trading Profits and Manage Risk Effectively in Volatile Market 7 March 11 March 2016 Kuala Lumpur, Malaysia Supported By

2 Course Overview Having seen oil prices fall from $110 per barrel to under $40 per barrel, the importance of price risk management in oil trading has never been greater. The high volatility of oil prices has increased price risk since 2008/ In order to survive and thrive in this volatile market, hedging plays an ever increasingly important role in crude oil trading. There are many different varieties and grades of crude oil and benchmarks being used as reference price for sellers and buyers of crude oil. It is important to know and recognize which one you should be using. Concept of hedging is crucial to identify price risk and reduce price risk associated with trading. Our Crude Oil Trading & Price Risk Management provides the knowledge and understanding of the workings of the world of crude oil trading and introduce the complicated concept of hedging, to identify price risk and learn how to manage that risk through the different financial instruments available. Course Design This course is designed to give delegates an introduction to crude oil trading in a safe environment and to guide delegates through the complicated concept of hedging, allowing them to analyse and mitigate risk in crude oil market. Includes Specific and Practical Case Studies Participants will be guided through a combination of lecture, syndicate work, case studies and trading game to sharpen their ability to manage price risk and crude oil trading in this volatile market. How Does This Course Benefits You? Learn various trading techniques and methods in crude oil trading Understand the crude oil trading market and different benchmarks to trade products in oil & gas market successfully Analyse the market performance in oil & gas investment Attain the skills in evaluating the market performance and their future outlook in order to trade in safer environment. Identify crude oil market risk Learn the methodologies to identify market risk and the way to control them effectively by applying practical strategies and technical analysis to mitigate risk factors Leverage on energy derivatives Leverage on energy derivatives to hedge oil prices and risk exposure PetroSync Quality Assurance All PetroSync courses are developed with top quality to address all your training needs and purposes. Our courses are vetted strictly to ensure that we always deliver the best courses with the best industry expert. PetroSync Inhouse Solutions PetroSync can tailor our courses to meet your specific needs at your preferred location and schedule. Contact us for more information at or to 2

3 PetroSync Distinguished Instructor David Ford Managing Director Ridgeway Energy Consultancy Ltd Practical & Consulting David has over 20 years of financial experience in petroleum industry. He was Managing Director of IPE Training Ltd and established it into a worldwide provider of quality energy training courses. He set up Ridgeway Energy Consultancy Ltd. (REC) and has been involved in a number of international projects, covering energy trading and risk management, OTC clearing on commodities, strategy and business organizational issues. Training Has lectured on energy topics across Europe, Russia, Kazakhstan, Dubai, Singapore, China and USA. Publication He is the author of An Investor s Guide to Traded Options and Mastering Exchange Traded Equity Derivatives Partial Client List CNPC. UNIPEC, BP, JOGMEC Who Needs This Program This course is designed for professionals who wish to enhance their knowledge in crude oil trading market and, including: Job Titles Include: Trading Managers Energy, Oil & Gas, Commodity Traders Portfolio & Planning Managers Oil & Gas Equity Analysts Risk Consultant XXX Risk Managers/Credit Risk Analysts Energy Trading Firms Financial, Business & Commercial Analysts Oil & Gas Financial Consultants Oil & Gas Executives in Banking & Corporate Finance Course Schedule 08:00 09:00 Registration (Day 1) 13:00 14:00 Lunch 09:00 11:00 Session I 14:00 15:30 Session III 11: Refreshment Session I 15:30 15:45 Refreshment Session II 11:15 13:00 Session II 15:45 17:00 Session Iv (Last Session) PetroSync Quality Assurance All PetroSync courses are developed with top quality to address all your training needs and purposes. Our courses are vetted strictly to ensure that we always deliver the best courses with the best industry expert. PetroSync Inhouse Solutions PetroSync can tailor our courses to meet your specific needs at your preferred location and schedule. Contact us for more information at or to 3

4 Course Agenda 5 Days DAY 1-Markets, Supply & Demand, Transportation Trading Markets Physical Spot Forwards Term Over-The-Counter (OTC) Swaps Exchanges Futures Forward Curves Supply and Demand Issues Geopolitics What is crude oil Reserves Supply and consumption Structure of the Markets Trends Exercise: Supply and Demand Headlines Trading Crude Market locations Contracts Pricing mechanisms Price exposure Trading Game DAY 2-Pricing Crude Evaluation & Refining Classification and assay Gross product worth (GPW) Simple distillation Cracking Exercises: Calculating crude values using gross product worth (GPW) Valuing different crudes using spread values from a benchmark price Oil Products Markets Consumption Refinery margins Trends in refining Product Markets and trading Benchmarks What is a benchmark? What makes a grade a benchmark Main global benchmarks West Texas Intermediate (WTI) American Customer Satisfaction Index (ACSI) Dubai Brent Future developments of oil Brent Dated Brent BFOE-21 Day Intercontinental Exchange Brent The Exchange of Physical (EFP) Premium Contract for Differences (CFD) Bwave Pricing Methodology Platts Petroleum Argus Exercise: Technical Analysis-A structural Approach Trading Game DAY 3-The Foundations of Price Risk Management Trading Markets Physical Spot Forwards Term OTC Swaps Exchanges Futures Forward curves Physical Pricing Mechanisms Fixed pricing Floating pricing Indexation Price exposure-profit and loss Volatility Exercises: Calculating the physical price volatility and the square root of time rule Calculation of physical/derivative price correlation Identification of price risk 4

5 DAY 4 Price Risk Management-Hedging Instruments Hedging Basic principls and onjectives Identification of risk Credit, operational, basis etc. Risk matrix Value-at-risk (VaR) Hedging volumes Cashflow-at-Risk (C-FaR) Futures Basic concept Definitions and terminology Profit & loss, long & short Exercise and delivery vs. cash settlement Pricing and Forward Curves Cost of carry Contango Backwardation Basis The Clearing House Clearing Central counterparty Margin Exercise and delivery Exchange of Futures for Physical (EFP) Objective of an EFP Increase in open interest Decrease in open interest No change in open interest Trigger Pricing and Basis Trading-A Form of Hedging Objectives Trigger pricing process Basis trading Establishing the basis Trading out Exercise: Hedging with futures-with and without basis risk Hedging as producer, refiner, consumer and trader using futures DAY 5 Price Risk Management-Hedging Instruments Swaps Basic structure Plain vanilla Buyer vs. Seller Fixed for floating Cash flow Different Types of Swaps Differential Participation Extenable Double-Up Swaption Pre-paid Margin or crack Pricing Swaps Forward curve Contango Backwardation Futures OTC clearing Dodd Frank EMIR Exercise: Hedging as a producer, refiner, consumer and trader using futures Advanced Hedging Instruments Basic concept Definition and terminology Exercise and delivery Buyers and sellers, rights and obligations Characteristics of options Risk and award Profit and loss Basic Trades Long call Short call Long put Short put Gearing Principles of pricing premium Intrinsic value Time calue Volatility Option sensitivities-the Greeks Delta Gamma Rho Theta Vega Exercise: Hedging as a producer, refiner, consumer and trader using option Designing a Risk Management Programme International accounting standards and hedging Policies and procedures Control and supervision Organisation, roles and responsibilities 5

6 COURSE DETAILS Title : Crude Oil Trading Price Risk Management Date : 7 March 11 March, 2016 Location : Kuala Lumpur, Malaysia INVESTMENT PACKAGES (Please Circle) INVESTMENT PACKAGE Group Discount is based on Standard Price *To enjoy the promotion & discount offer, payment must be made before dateline * For 7 or more delegates, please inquire for more attractive package. * Prices include lunches, refreshments and materials. Promotion & discount cannot be combined with other promotional offers. 1st Delegate Name: Job Title: Head of Department: 2nd Delegate Name: Job Title: Head of Department: 3rd Delegate Name: Job Title: Head of Department: Attention Invoice to: Company: Address: Country: DEADLINE COT Masterclass: 2 Days DELEGATES DETAILS Department: Department: Department: INVOICE DETAILS Mr Mrs Ms Dr Others Mr Mrs Ms Dr Others Mr Mrs Ms Dr Others By Credit Card: Please debit my credit card: Visa MasterCard AMEX Security Code: Card Number: Expiry Date: Name Printed on Card: By Direct Transfer: Please quote invoice number(s) on remittance advice PetroSync Global Pte Ltd Bank Details: Account Name: PetroSync Global Pte Ltd Bank Name: DBS Bank Ltd Bank Code: 7171 Bank Swift Code: DBSSSGSGXXX Branch Code: 288 Account No: SGD: USD: Bank Address: 12 Marina Boulevard, Level 3. Marina Bay Financial Centre Tower 3. Singapore All bank charges to be borne by payer. Please ensure that PetroSync Global Pte Ltd receives the full invoiced amount. Fax: Industry: Postcode: 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. PAYMENT METHOD PRM Masterclass: 3 Days Full Masterclass: 5 Days Standard Price 4 Mar 2016 USD 2,395 USD 2,895 USD 4,295 Early Bird Offer 5 Feb 2016 USD 2,195 USD 2,695 USD 4,095 Group Discount ( 3 Delegates) 4 Mar % Discount COURSE CONSULTANT Name : Cay Aagen registration@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 courseme 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. CERTIFICATE OF ATTENDANCE 70% attendance is required for PetroSync s Certificate of Attendance 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) CONFIRMATION I agree to PetroSync s terms & conditions, payment terms and cancellation policy. - For Payment by Direct Telegraphic Transfer, client has to bear both local and oversea bank charges. - For credit card payment, there is additional 4% credit card processing fee. Authorized Signature: PAYMENT TERMS : Payment is due in full at the time of registration. Full payment is mandatory for event attendance. 6