ITRM - International Oil Trading and Price Risk Management


Course Dates: 30 October - 1 November 2017


Course fees:  US$ 3,500 per person

Invincible Energy has designed this course to give delegates a comprehensive understanding of international oil trading and price risk management from an Asian perspective.  It is presented through the medium of a fictional trading company and all hedging and trading decisions will be taken by delegates in the market conditions prevailing at the time.  Live market information will be provided through data feeds and daily price reports.

A range of practical hands on exercises will be performed in syndicate groups with comprehensive debriefs to study the consequences of the decisions made.  The course expects a high degree of participation from delegates.


Introductory Material

  • Introduction to trading and markets
  • Price reporting

Products Trading and Chartering

  • Mechanics of trading products
  • Freight costs
  • Oil broking
  • Chartering
  • Costings
  • Comparing alternative outlets

Risks and Exposure

  • Risks in trading
  • Price Exposure

Risk Management Instruments

  • Futures markets
  • Forward markets
  • OTC instruments
  • Introduction to options
  • Comparison of instruments

Risk Management Techniques

  • Hedging with futures
  • Hedging with swaps
  • Spread trading
  • Refinery margin management

Crude Oil Trading

  • International pricing of crude oils
  • Trading BFOE and DFL/CFDs

Performance and Credit

  • Client/counterpark risk
  • Documentation


  • Negotiating a deal
  • Writing a contract
  • Legal issues
  • Tendering

Trading Controls

  • Management of trading activities

What will you learn?

  • Negotiate, cost and compare deals
  • Write a contract for the purchase and sale of crude oil and refined products.
  • Calculate freight costs using Worldscale and charter a ship.
  • Trade futures, Singapore swaps and forward markets for hedging and price risk management
  • Calculate the profitability of deals
  • Identify price risk and hedge
  • Manage refinery margin risk

You will understand:

  • How prices on the international free markets are established and what influences the markets
  • Crude oil and refined product pricing and trading
  • Refined product pricing and trading
  • How OTC markets trade
  • Basic options theory
  • Oil trade finance and documentation
  • The basics of management control

Who Should Attend?

Anyone wishing to learn about physical and derivative trading and hedging.  Anyone coming into trading from elsewhere in the industry.  Those in supply and marketing functions looking for a wider understanding of the market;  those in oil companies, banks, law firms, accountancy practices, the media and elsewhere who interface with traders and trading;  those moving into oil markets from the financial markets or elsewhere.


Previous page: Oil Price Risk Management
Next page: Booking