Crude Oil Trader Program - Simulation Based: VIRTUAL DELIVERY

ICE Education and TwoTwoFive bring together their physical and derivative Crude Oil markets expertise, to deliver an immersive and interactive learning experience.

Delivered live online in eight 2-hour sessions over 4-days, the trading concepts will be decoded in a bite-sized manner to reveal the key methodologies and intricacies behind them.

In addition, you will be able to practice what you have learnt by playing realistic trading scenarios via a unique trading simulator allowing you to experience the psychological challenges a trader has to endure daily.

Each concept features:
1. An interactive digital pre-read featuring videos, tutorials, and quizzes to reinforce your understanding of the concept. This will take 1-hour to complete
2. A 2-hour live online session hosted by a former trader who talks through the concept in detail, and how it's applied in the real world. The delegate to TwoTwoFive facilitator ratio is kept at a maximum of 4:1 to ensure every delegate can be coached during the trading simulations. The live online session is streamed twice per day: 8 am - 10 am (London)/3 pm - 5 pm (Singapore) and 11 am - 1 pm (London)/6 pm - 8 pm (Singapore) for 4 days.
3. Access to the unique trading simulator with fellow course attendees to practice trading
4. A knowledge check. On completion of the course, a pass certificate and 24 CPD will be awarded.

Course Information

Price £2,500 + VAT
Duration 4 days
Location Virtual: EMEA/Asian Time Zone
Available Dates
Nov 08 2021  Register Now
May 16 2022  Register Now
Nov 07 2022  Register Now

Who Should Attend

  • If your work is affected by the changes to the international price of oil
  • oil industry staff working supply, trading risk management, refining, finance, transportation and E&P
  • Oil trading and distribution companies
  • Energy-related government departments
  • Purchasing, planning and finance departments in major energy consumers
  • Energy publications
  • Bankers, accountants, auditors and others associated with oil companies and oil financing.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1:

- Derivatives:

What is trading and why do companies trade. Explains some trading terminology. What is a crude oil derivative? What is 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.

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.

Simulations: 2 trading simulations where delegates will be able to trade Brent futures within a VAR trading limit.

Day 2:

- 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.

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

- 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. Explains floating prices and benchmark prices. What is crude oil differential trading?

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

Day 3:

- 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

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 fixed price/floating price cargoes. Operational impact on pricing.

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 4:

- 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.

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.

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.