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Why Choose this Training Course?
An oil trader is a dynamic and exciting profession that requires a combination of market knowledge, financial expertise, and risk management skills. Being an oil trader means being part of a dynamic industry that plays a crucial role in the global economy. Often traders work in high-energy work environments, thrive under pressure, and enjoy being part of a team that is constantly adapting to changing market conditions. Here, every day is an opportunity to learn and grow in this exciting field.
This PetroKnowledge training course provides the knowledge and skills in analyzing market trends, understanding contracts, and managing risk associated with oil trading activities. It is useful for traders in energy companies, banks, hedge funds, and other financial institutions. Oil traders need to have a deep understanding of the oil industry and its supply and demand dynamics, as well as the geopolitical factors that affect oil prices. We further discuss analytical skills, decisions judgment, and skills to manage complex financial instruments.
This Crude Oil Trader training course will highlight:
Oil Traders as value generators
Global Oil Markets and the Geopolitics of the energy sector
Analytical skills in risk management and value creation
Market instruments for hedging risk and capitalizing on the upside opportunities
Financial concepts in oil trading
What are the Goals?
At the end of this Crude Oil Trader training course, you will learn to:
Appreciate the global dynamics of oil markets
Analyze price trends and use market information to inform price forecasts
Appreciate the role of market instruments like forwards, futures, and options
Use corporate financial concepts for analysis of trades and contracts
Use analysis to mitigate risks and support create value from opportunities
Who is this Training Course for?
This PetroKnowledge training course is suitable for traders, strategists, analysts, and economists—anyone who makes trading decisions or supports such decisions. It is also beneficial for investment bankers, management professionals, and investors.
This Crude Oil Trader training course is suitable to a wide range of professionals but will greatly benefit:
Planners and Forecasters
Economists using insights from crude oil trading
Individuals aspiring for management roles in crude oil trading
Energy Managers, Decision Makers, and Executives
How will this Training Course be Presented?
The instructor uses a proven learning technology that has been implemented in the leading universities in the UK and US (as well as industrial settings) with considerable success. The sessions include online lectures, discussions, and guided real-world practice. The aim is to develop problem-solvers and effective decision makers rather than merely conveying information.
All firms aim to create value from their operations and crude oil traders are often the last link of the value chain. With market dynamics, the challenge is in good trading decision and superior analytical skills. The firms should be able to develop trading strategies that support their ventures.
This Crude Oil Trader training course trains individuals to:
Increase organization’s capabilities in crude oil trading
Possess the knowledge and skills to describe the key success factors for trading crude oil
are effective in enhancing value chain
Understand the business environment and the value creation from trading
Support the prudent decision-making process
Open doors to further opportunities
Gaining knowledge and skills in crude oil trading prepares an individual for a variety of positions. This is because the skills in analysis and the gained insights lead to improved decision-making and enhance the value of the person in an organization. This course prepares individuals for a more effective role within the trading and trading support. It further creates opportunities to grow within the energy industry.
This Crude Oil Trader training course will enable the attendees to:
Prepare individuals for a role with wider insights and perspective
Give participants a more informed frame of the future in the energy industry
Lead to knowledge and skills with modern analytical tools
Enable participants to analyze complex investment decisions
Develop skills in understanding energy ventures and communicating decision insights
Day One: The Fundamentals of Trading
Crude Oil Trading introduction: physical and financial markets
Global Oil Markets
Reserves and probabilistic estimation of reserves
Supply and demand and market equilibrium
Theories of fair price and market trends
Market Trends: the level and scope of crude oil futures contracts
Day Two: Uncertainty, Risk, and Upside Opportunity in Oil Markets
Uncertainty: using probability to encode uncertainty
The refining spread and pricing of crude oil
The regional natural gas markets, a deviation from global crude oil markets
Forward and futures contracts
Risk management for corporations: should they manage risk?
Day Three: Market Instruments for Risk Management
Price discovery mechanism
Forward and future contracts and insights for price forecast
The spot-forward relationship for commodities
Options contracts and their valuation challenges
Valuation Methods: Black-Scholes method and binomial lattice
Real options in the energy markets
Day Four: Estimating the Stochastic Process for Crude Oil Prices
Volatility of prices: Using a tutorial in spreadsheets
Historical volatility versus implied options volatility of crude oil prices
The random walk process
Mean reversion as a basic characteristic of commodities
Why stochastic processes? Value aspect of price behavior
Risk management tools and price behavior
Day Five: Valuation and Hedging in Crude Oil Markets
Hands on Analytics: simulation and binomial lattice
Practical experience and insights
The extrapolation of price trends
Hedging Strategies: Hedge and Forget vs Dynamic Hedging
Summary and Conclusions: risk and reward are hand in hand
On successful completion of this training course, a PetroKnowledge Certificate will be
awarded to the delegates
In Association With
The Energy Training Centre
Our collaboration with The Energy Training Centre aims to provide the best training services and benefits for our valued clients.