Crude Oil - Live Online Course Physical Cargo Risk Management

Course summary
Professional Training
12 hours
1,250 GBP excl. VAT
Online courses
Course Dates
Online courses
1,250 GBP

Course description

Live Online Course:  Crude Oil Physical Cargo Risk Management 

This live online course contains 12 hours of learning content, including over 3 hours of trading simulations. The course explains:

  • How physical crude oil is priced and traded
  • Geographical arbitrage, the associated price risks and how best to manage them
  • How you manage price risks on crude oil cargoes with different pricing mechanisms
  • Why settlement prices are important, what pricing windows are and how they work.

The interactive E-Learning modules should each take 1 hour to complete and forms a pre-read, along with some trading simulation tutorials before attending the live sessions in our virtual classroom.

The live session will last 2 hours and is hosted by a former trader who will talk through the trading concept and how it is applied in the real world (not theoretically).  During the session, you will play a complex trading simulation to help you understand and apply the trading concept.

You will receive access to the trading simulator 1 week prior to the first live session.  You will be able to play a 10-minute trader training tutorial an unlimited amount of times.  The tutorial will reinforce your understanding and allow you to see how it's applied.

Course Schedule: 

11-12 Oct 2022

Day 1: 9-11am and 1-3pm GMT

Day 2: 9-11am and 1-3pm GMT

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.

You should have an understanding of crude oil paper markets.

Outcome / Qualification etc.

By completing/passing this course, you will attain the certificate TwoTwoFive Certificate Crude Oil and awarded 12 CPD points

Training Course Content

  • Price Exposures
    • What is physical cargo trading
    • Physical delivery terms
    • Factors that influence supply
    • Factors that influence demand
    • Crude oil quality
    • Contractual considerations
    • Price reporting agencies - who are they and what they do
    • Explains floating prices and benchmark prices
    • What is crude oil differential trading
  • 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
  • ​Hedging
    • Why hedge
    • Basis risk
    • Swaps as hedging instruments
    • Types of hedging
    • A detailed example of hedging a fixed price cargoes
    • A detailed example of hedging a floating price cargoes
    • Operational impact on pricing
  • Settlement Prices and Pricing Windows
    • What are settlement prices and why are they important
    • How settlement prices are determined
    • Price reporting agency settlement assessment methods explained
    • The history of market on close (MOC) and pricing window's
    • Fundamental principles of MOC
    • Pros and cons of pricing windows
    • When is MOC and how long it lasts
    • A MOC timeline
    • Pricing window methodologies
    • A pricing window in action
    • Hedging in the pricing window

Course delivery details

This Live Online Course is delivered live online, on the set dates and times stated.

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

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