Crude Oil Trading and

Transcription

1 Exercises & Interactive Trading Simulation included! Crude Oil Trading and Price Risk Management Maximize Trading Profits and Manage Risk Effectively in a Volatile Market 18th 22nd May 2015, Kuala Lumpur, Malaysia Petrosync Distinguished Lecturer David Ford Managing Director Ridgeway Energy Consultancy Ltd Testimonials Over 20 years of financial experience in the petroleum industry Past Managing Director at International Petroleum Exchange(IPE) Training Ltd Author of An investor s guide to traded options and Mastering exchange traded equity options He gives idea in managing risk exposure from different perspectives - Petronas LNG Malaysia Very comprehensive coverage of oil industry. Now I have a better understanding of the Brent cash market, Forward and market - Interoil Singapore David has excellent clarity on the subject and has a very good style of explaining. I am happy to attend this programme - Reliance Industries Global Energy Services IN-HOUSE SOLUTIONS SAVE COST IMPROVE PERFORMANCE REDUCE RISK PetroSync understands that in current economic climate, getting an excellent return on your training investment is critical for all our clients. This excellent training can be conducted exclusively for your organization. The training can be tailored to meet your specific needs at your preferred location and time. We will meet you anywhere around the globe. If you like to know more about this excellent program, please contact us on or general@petrosync.com Supported by

2 Course Overview Masterclass 1: Supply and Trading International Oil 18th-19th May 2015 This intensive and highly interactive two-day course is designed to give delegates an introduction to crude oil trading in a safe environment. Delegates gain exposure, knowledge and understanding of the workings of the world of crude oil trading and is designed for both potential traders and logistics staff. The course is a combination of lecture, syndicate work, case studies and a trading game. Masterclass 2: Price Risk Management and Hedging 20th-22nd May 2015 Having seen oil prices fall from $110 per barrel to under $50 per barrel, the importance of risk management has never been greater. This high volatility has increased price risk not seen since 2008/9. Price risk management, hedging, is designed to reduce price risk associated with trading and introduce an element of certainty. This interactive three-day course is designed to guide delegates through the complicated concept of hedging, allowing them to identify price risk and learn how to manage that risk through the different financial instruments available. Course Objectives ANALYSE the market performance oil and gas investments and their future outlook LEARN to trade products in the oil and gas market successfully DEVELOP a thorough understanding of the various trading techniques and methods IDENTIFY market risk and learn to control them effectively APPLY practical strategies and technical analysis to mitigate risk factor in energy trading LEVERAGE on energy derivatives to hedge prices and risk exposure Specially Designed for This course is intended for Energy, Oil & gas, Commodity traders Trading Managers Portfolio & Planning Managers Oil & Gas Equity Analysts Risk Consultants, Risk Managers Credit Risk Analysts Energy Trading Firms Financial, Business & Commercial Analysts Oil & Gas Financial Consultants Oil & Gas Executives in Banking & Corporate Finance PROGRAM SCHEDULE 08:00 09:00 Registration (Day1) 09:00 11:00 Session I 11:00 11:15 Refreshment & Networking Session I 11:15 13:00 Session II 13:00 14:00 14:00 15:30 Lunch Session III 15:30 15:45 Refreshment & Networking Session II 15:45 17:00 Session IV 17:00 End of Day

3 Masterclass 1: Supply and Trading International Oil 18th-19th May 2015, Kuala Lumpur, Malaysia COURSE AGENDA Trading Markets Physical Spot Forwards Term OTC Swaps Exchanges Forward curves Supply and Demand Issues Geopolitics What is crude oil Reserves Supply and consumption Structure of the markets Trends Day One: Markets, Supply & Demand, Transportation Exercise: Supply and demand headlines Transportation Time charter World scale Pipelines Exercise: Calculation of freight costs using Worldscale Trading Crude Market locations Contracts Pricing mechanisms Price exposure TRADING GAME Day Two: Pricing Crude evaluation and 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 Brent WTI ASCI Dubai Brent Future Developments of Oil Dated Brent BFOE - 21 Day ICE Brent The EFP premium CFD s Bwave Pricing Methodology Platts Petroleum Argus Exercise: Technical analysis - a structural approach TRADING GAME 1

4 Masterclass 2: Price Risk Management and Hedging 20th-22nd May 2015, Kuala Lumpur, Malaysia Day Three: The foundations of price risk management Trading Markets Physical Spot Forwards Term OTC Swaps Exchanges 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 Day Four: Price Risk Management - Hedging Instruments Hedging Basic principles and objectives Identification of risk Credit, operational, basis etc. Risk matrix Value-at-risk (VaR) Hedging volumes Cashflow-at-Risk (C-FaR) Basic concept Definitions and terminology Profit & loss, long and 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 a producer, refiner, consumer and trader using futures

5 Masterclass 2: Price Risk Management and Hedging 20th-22nd May 2015, Kuala Lumpur, Malaysia Day Five: Price Risk Management - Hedging Instruments Swaps Basic structure Plain vanilla Buyer vs Seller Fixed for floating Cash Flow Different types of swaps Differential Participation Extendable Double-up Swaption Pre-paid Margin or crack Pricing swaps Forward curve Contango Backwardation OTC clearing Dodd Frank EMIR 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 reward Profit and loss Basic trades Long call Short call Long put Short put Gearing Principles of pricing premium Intrinsic value Time value Volatility Option sensitivities - The Greeks Delta Gamma Rho Theta Vega HYBRID TRAINING SOLUTIONS Hedging as a producer, refiner, consumer and trader using option Designing a risk mangement programme International accounting standards and hedging Policies and procedures Control and supervision Organisation, roles and responsibilities FOCUSED TRAINING REDUCED COST ENHANCED RESULTS Over the years, there has been a growing demand for hybrid training programs. It is an excellent option to maximize your training dollar for your specific training needs. We make it possible to run a training program that is customized to your training needs at a fraction of an in-house budget! If you like to know more about this program, please contact us on or general@petrosync.com

6 Crude Oil Trading & Price Risk Management 18th-22nd May 2015, Kuala Lumpur, Malaysia Petrosync Distinguished Lecturer David Ford Managing Director Ridgeway Energy Consultancy Ltd Over 20 years of financial experience in the petroleum industry Past Managing Director at International Petroleum Exchange (IPE) Training Ltd Author of An Investor s Guide to Traded and Mastering Exchange Traded Equity Derivatives David has over 20 years of financial experience in the petroleum industry. He was Managing Director of IPE Training Ltd, the training subsidiary of the Exchange. David established it in into a worldwide provider of quality energy training courses. David is the author of An Investor s Guide to Traded and Mastering Exchange Traded Equity Derivatives and numerous newspaper and magazine articles. After leaving the IPE David set up Ridgeway Energy Consultancy Ltd (REC). Since founding REC David has been involved in a number of international projects in China, Russia, Kazakhstan and Europe covering energy trading and risk management, OTC clearing on commodities, strategy and business organisational issues. David has lectured on energy topics across Europe, Russia, Kazakhstan, Dubai, Singapore, China and USA. He started working in the City of London for the London Traded Market (LTOM) a division of the London Stock Exchange. He moved to Wise Speke stockbrokers later. Intercontinental Exchange (ICE) Europe (previously IPE) The International Petroleum Exchange (IPE) founded in 1980 was one of the world's largest energy futures and options exchanges. It handled futures contracts, options on fuel oil, natural gas, electricity, coal contracts as well as its leading commodity, Brent Crude. Acquired by ICE in 2001 and renamed ICE Europe, it is now ICE's London-based, regulated futures exchange for global energy markets. ICE Europe lists the leading global crude oil benchmarks and sees half of the trade in the world's crude oil and refined product futures in its markets. ICE also offers the leading European emissions futures market. Participants in more than 70 countries have access to a range of futures and options contracts to manage risk around-the-clock, in a transparent and liquid marketplace. David s Selected Client List: CNPC (China National Petroleum Corporation) UNIPEC (China International United Petroleum & Chemicals) BP JOGMEC (Japan Oil, Gas and Metals National Corporation) Gazprom ICE Europe CSRC (China Securities Regulatory Commission) BHP Billiton BNP Paribas Credit Suisse Fortis Bank Petroleum Finance, Economic & Business Training Courses (JANUARY - DECEMBER 2015) DATE COURSE TITLE INSTRUCTOR 16th - 17th March Introduction to Oil & Gas Accounting Ahmed Badawy 18th - 20th March Practical Accounting in JV and PSC Ahmed Badawy 24th - 27th March Applications of VBA & Advanced Excel to Financial Modeling & Analysis Michael Rees 8th - 11th June Advanced Financial Modeling for Oil & Gas Michael Rees 8th - 9th June Introduction to Oil & Gas Accounting Ahmed Badawy 10th -12th June Practical Accounting in JV and PSC Ahmed Badawy 6th - 9th October Risk & Simulation Modeling for Oil & Gas Applications Michael Rees 16th - 17th Nov Introduction to Oil & Gas Accounting Ahmed Badawy 18th - 20th Nov Practical Accounting in JV and PSC Ahmed Badawy For a copy of PetroSync s Training Calendar for 2015, please visit :

7 COURSE DETAILS Title : Crude Oil Trading and Price Risk Management Date : 18th - 22nd May 2015 Location : Kuala Lumpur, Malaysia INVESTMENT PACKAGES Please circle the package that you are attending! Investment Package Deadline MASTERCLASS 1 : 2 DAYS Group Discount is based on Standard Price * To enjoy the promotion & discount offer, payment must be made before deadline * 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. * Important: Please note that registration without payment will incur a SGD 200 administration fee. 1st Delegate Name Direct Line Number: Job Title: Head of Department: 2nd Delegate Name Direct Line Number: Job Title: Head of Department: 3rd Delegate Name Direct Line Number: Job Title: Head of Department: DELEGATES DETAILS INVOICE DETAILS Mr Department: Attention Invoice to: Direct Line Number: Fax: Company: Industry : Address: Postcode: Country: 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 METHODS By Credit Card : Please debit my credit card: Visa MasterCard Card Number: Mr Department: Mr Department: AMEX MASTERCLASS 2: 3 DAYS Standard Price 15th May 2015 SGD $ 2,995 SGD $ 3,995 Early Bird Offer 17th April 2015 SGD $ 2,795 SGD $ 3,795 Group Discount (3 or more Delegates) 15th May 2015 Mrs Ms Dr Others Mrs Ms Dr Others Mrs Ms Dr Others Security Code: Expiry Date: FULL MASTERCLASS 1 & 2 : 5 DAYS SGD $ 5,995 SGD $ 5,795 10% discount for groups of 3 registering from the same organization at the same time 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 Pte Ltd receives the full invoiced amount. PROGRAMME 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 programme 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. 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