Commercial & Trading Aspects of Oil Refining

Attend this practical and interactive four-day training course and enhance your knowledge on the following key areas: Crude selection Physical oil markets, pricing mechanisms and price exposure Introduction to Brent Hedging instruments: forward and futures Refinery products and processes Swaps Dated Brent and the BFO market and CFD's Trends and developments International product trade flows and transport Refinery margins and economics Management issues Plus: Briefing and refining and trading simulation Post refining and trading simulation case study Learn how to optimise refinery margins and manage the profitability of commercial refining. Everyone associated with refining should be profit focused. This Euromoney Energy Training course will provide in-depth knowledge of the refining business and an understanding of how trading/hedging can improve margins and reduce risk. How this Commercial and Trading Aspects of Oil Refining course will help you You will: Understand the refinery configurations and main processes Define refinery margins and learn about margin evolution and regional variation Examine refinery economics and assess refinery profitability and performance Develop skills in trading and hedging Trade refinery components and feedstocks Investigate refining in an environmentally conscious world Assess the future of refining Briefing and refining and trading simulation An exciting and challenging team exercise run throughout the course, where participants trade and hedge refinery products. The key objective is to optimise margins and manage profitability in fluctuating market conditions. "It was a great combination of theory and practice" - Raiffeisen Bank Ltd "It was a great learning experience providing rich knowledge in oil trading and other related processes. I loved it." - Ministry of Energy & Mineral Development - Uganda "Excellent experienced lecturers. The simulation was excellent." - Saudi Aramco
Day 1 Overview Course content Evolution of oil demand Refinery location, capacity and utilisation Regional product consumption and product barrel Introduction to trading markets Crude selection Nature and types of crude oil/crude assay GPW and pecking order Influence on product make Crude transportation Base and marginal crude Physical oil markets, pricing mechanisms & price exposure Physical oil markets Pricing mechanisms Pricing exposure/keeping an exposure book Introduction to Brent Introduction to the terms Role as a benchmark Why Brent? Day 2 Briefing & refining & trading simulation (round 1) General introduction Physical (wet) crude trading GPW and best crude Hedging instruments - forward & futures Evolution of the market Crude oil forward markets Review of futures contracts & terminology Hedging example using futures Basis risk and forward curve Technical analysis Briefing & refining & trading simulation (round 2) Crude hedging with futures/basis risk Hedging strategy and position management Refinery nominations (crude type and mode of operation) Refinery products & processes The main products Refinery configurations Deep residue conversion How refiners influence yield variations Overview / summary Swaps Swaps terminology and principles Examples of crude oil and product swaps Swaps settlement and pay-out Day 3 Briefing & refining & trading simulation (round 3) Gas oil futures and mogas swaps Developing a trading strategy Dated Brent and the BFO market & CFD’s The Brent forward contract Brent lifting programme Linking of the 21 day and dated Brent markets Contracts for difference/Brent CFD market Trends & developments Alternative & renewable fuels Changing crude slate Transport fuel quality & emissions Regional demand trends New plant investment Briefing & refining & trading simulation (round 4) Margin management strategies International product trade flows and transport Differences between products & crude The main product markets Product price drivers Product price differentials Refining balance Fundamentals of the various product markets Power market Bunker market Atmospheric residue market Importance of refining margins Freight Arbitrage & trade Role of traders/blenders Day 4 Refinery margins & economics Regional margin mechanism Refinery margins & regional trends Drivers for margin maximisation Blending & giveaway Performance monitoring New project economics Capex project- lock-in economics Case study: post refining & trading simulation Simulation results & briefing for team presentations Management issues Control lessons learnt The major economic risks Controlling risks Team’s refining & trading strategy presentations Course summary and close