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Crude Oil Face-to-Face Academy

TwoTwoFive
Course summary
Professional Training
3 days
2,750 GBP excl. VAT
Full time
London
Course Dates
London
2,750 GBP
11/10/2022

Course description

Face-to-Face Academy: Crude Oil

The Crude Oil Face-to-Face Academy is an engaging and interactive course that will help you understand how a trader extracts value and manages risk in an Crude Oil portfolio. 

Delivered over 3 days in a class room, it features engaging and interactive lectures coupled with a number of realistic physical trading simulations via our unique simulator, Ignite; giving you the opportunity to experience the psychological highs and lows of commodity trading.

Duration: 3 days

Course Dates: 11-13 October 2022

Timings: 9am-5pm GMT 

Location: London, UK 

Suitability - Who should attend?

Suitable for individuals working in organisations such as:

Trading companies, Banks, Brokers, Oil producers, Consumers, Refiners, Distribution companies, Government and Associated organisations.

Including roles in:

Back office, Accounts, Financial operations, Middle office, Trade control, Analysts and Front office, Juniors, Managers and Operations.

Outcome / Qualification etc.

By completing/passing this course, you will attain the certificate TwoTwoFive Certificate Crude Oil and achieve 24 CPD points.

Training Course Content

Day 1

Derivatives

  • What is trading and why do companies trade
  • Explains some trading terminology
  • What is a crude oil derivative
  • What the difference between forwards, futures, swaps, and options are
  • How they are connected, EFP, EFS
  • How a futures exchange works
  • How traders use crude oil derivatives

Ignite simulations – Up to 3 trading simulations where delegates will be able to trade futures, swaps, and forwards

Trading Best Practice

  • What is risk
  • The different types of risk - price, credit, operational, reputational
  • How risk can be managed successfully by a trader
  • Technical analysis
  • How risk is measured, what is VAR and how is it used
  • Trading lessons - common pitfalls

Ignite simulations – 2 trading simulations where delegates will be able to trade Brent futures within a VAR trading limit

Time Spreads

  • What is spread trading/different types of spread?
    Principles of spread trading
    What a forward curve is and market structure
    Different types of market structure and what they signify
    How traders use time spreads

Ignite simulations – 2 trading simulations where delegates will be able to trade Brent and WTI futures within a VAR trading limit

Day 2 

Cargo Price Exposures 

  • What is physical cargo trading
  • Physical delivery terms
  • Factors that influence supply/demand
  • Crude oil quality
  • Contractual considerations
  • Price reporting agencies - who are they and what they do
  • Explain floating prices and benchmark prices
  • What is crude oil differential trading

Ignite simulations – 2 trading simulations where delegates will be able to trade North Sea and West African physical crude oil cargoes

Arbitrage 

  • Explains physical arbitrage
  • Different aspects of crude oil
  • Voyage chartering/Time charter
  • Bareboat charter
  • Contract of affreightment
  • Worldscale - what it is and how it works
  • Operational costs of arbitrage
  • Financial risks
  • When traders arbitrage
  • Netback calculation

Ignite simulations – 2 trading simulations where delegates will be able to trade American, North Sea and Middle Eastern physical crude oil cargoes, charter vessels and manage price risk exposures

Hedging 

  • Why hedge
  • Basis risk
  • Swaps as hedging instruments
  • Types of hedging
  • A detailed example of hedging a fixed price/floating price cargoes
  • Operational impact on pricing

Ignite simulations – Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as physical cargoes price in/out

Day 3

Storage 

  • What is storage/why store oil
  • The costs/benefits associated with storing oil
  • When traders store oil
  • Types of market structure
  • How to hedge a storage play
  • Intrinsic and Extrinsic Value

Ignite simulations – 2 trading simulations where delegates will be able to store American and European crude oil cargoes and apply hedges to capture the storage play

Team Dynamics 

  • How to extract value from a physical crude oil portfolio
  • Why speedy evaluation of opportunities is critical
  • Why teamwork is important
  • Applying all the trading concepts learnt across a portfolio
  • Understanding the value of tenders

Ignite simulations – Working as a team, the delegates will apply all the trading concepts across a portfolio of crude oil cargoes, trading spot cargoes, entering tenders, hedging, arbitrage, seeking storage opportunities and speculatively trading the futures markets with flat price and spreads positions.

Course delivery details

This Academy is a classroom based course in London, UK. 

Why choose TwoTwoFive

Practice trading with IGNITE trading simulator

1,000s of individuals from 100s of companies trained over the last 10 years

Our trainers have a combined 100+ years of trading experience 

About provider

TwoTwoFive - Commodity Trading Academy 

At TwoTwoFive we provide next-generation CPD certified Commodity Trading Training Courses for individuals and businesses globally. Our LNG, Natural Gas, Crude Oil, and Oil Products trading courses are highly interactive (not endless reams of PowerPoint slides) and are created and...


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TwoTwoFive

Kemp House, 152-160 City Road
EC1V 2NX London Middlesex

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