An Interactive 5-Day Training Course
Oil Price Volatility and Risk Management
Survive and Thrive the Price Volatility with the Financial Derivatives
Course Overview
The Oil & Gas industry is essential and decisive in steering the global economy. The Oil & Gas business is diverse, technically complex, highly capital intensive, and often confronted with potential risks and uncertainties. Today’s oil companies are dealing with ever-increasing levels of complexity and competition. Purchase, Sales, Marketing, Trading, and Risk Management are crucial and the most active parts of the hydrocarbon value chain, and extremely important for managers and industry leaders to stay on top of these activities.
This 5-day accelerated Oil Price Volatility and Risk Management training course is designed to give delegates a thorough picture of crude oil, refined products, biofuel markets, risks, and legal and regulatory issues involved in the international crude oil trading and these products. It is presented with the petroleum industry's wide range of essential engineering practices spanning exploration, extraction, refining, global oil supply, reserves, production & trade flows. The associated risks and uncertainties can be fully understood with an overview of these essential practices. Since price volatility always exists, how Price Risk Management is conducted utilizing appropriate financial derivatives and techniques is presented in detail in this training.
This GLOMACS Oil Price Volatility and Risk Management training course will highlight the following:
- The essential practices of exploration, production, processing, and transportation of crude oil
- The success factors in the business of international sales, marketing, and trading of crude oil and refined products
- The essential logistics of global seaborne transit, pipelines, storage, and distribution of crude oil and refined products.
- The understanding of the pricing dynamics and benchmarks of crude oil, refined products, and biofuels in the global markets
- The price-risk management benefit from hedging instruments such as Futures and Forward Contracts, Swap, and Options
Training Objectives
This Oil Price Volatility and Risk Management training course will give delegates a comprehensive image of the global energy obtained through fossil fuels – crude oil, refined products, natural gas, LNG, and biofuels. The supply-demand dynamics of fossil fuels, price volatility, and the associated geopolitics explain the global energy industry's overall dynamics. The issues to be considered are sales, marketing, trading, and a particular focus on price risk management and reducing corporate risk.
- Gain business acumen in the wide-ranging subjects of upstream production to the downstream sales, marketing, and trading of crude oil, refined and renewable products
- Understand the critical crude oil and refined products pricing dynamics and the use of pricing benchmarks
- Develop price-risk management strategies using hedging instruments
- Acquire essential legal and regulatory issues relating to trading in the global markets.
- Reduce the overall risk of the Petroleum Industry and maximize the value chain profitability
At the end of this Oil Price Volatility and Risk Management training course, you will be able to:
- Fully understand the business of upstream, midstream, and downstream oil, refined products, and biofuels
- Comprehend refining processes, compute refinery margins, manage refined products and biofuels price risks
- Master the essential practices of sales, marketing, and trading of crude oil and refined products
- Learn to develop and negotiate general sales contracts, term contracts, and spot contracts
- Understand the International oil supply dynamics and geopolitics and effectively reduce the business risks
Who should Attend?
This Oil Price Volatility and Risk Management training course is suitable for a wide range of professionals, but will greatly benefit:
- Business & Development Managers
- Sales, Marketing, and Trading Managers
- Lawyers & Law Firms' Personnel
- Geoscientists, Engineers, and Refiners
- Bankers, Accountants
- Auditors
- Media Personnel who interface with traders and trading
- Government Regulators
- Tax & Finance Advisors
- Compliance Officers
- Equity and Financial Analysts
- Joint Venture Officers
- Negotiators
- Those who are into Trading
About Saudi Glomacs
At Saudi GLOMACS, we specialize in delivering world-class training courses in Saudi Arabia and across various international locations. Our training courses are tailored to meet the unique demands of Saudi Vision 2030 and the Human Capability Development Program, focusing on empowering Saudi citizens and enhancing workforce skills. We offer diverse courses spanning leadership, management, engineering, and technical disciplines to cultivate expertise and drive professional growth. Our flexible learning options—whether in-person, online, or in-house—ensure accessibility and convenience for individuals and organizations alike.
With over 30+ years of experience through the GLOMACS global network, we are committed to delivering innovative, results-driven training solutions. Our expert instructors combine industry knowledge with dynamic teaching methods, fostering practical skill development and long-term career success. By choosing Saudi GLOMACS, you're investing in personal excellence and contributing to the Kingdom’s sustainable economic growth and vision-driven transformation.
Training Outline
DAY 1: Introduction to Crude Oil: A Finite Resource
- Introduction to the Upstream Oil & Gas Industry
- Fundamentals of Oil & Gas Geology and Petroleum Engineering
- Oil & Gas Reserves, Production, Consumption & Trade
- The Impact of The Shale Industry
- Trends in Carbon Emissions, Carbon Capture, Utilization, and Storage
- Basic Refining and Refining Complexity
- Refining Economics
DAY 2: The Market Price Volatility of Crude Oil
- The Driving Factors of Oil Price Volatility
- Different Strategies
- International Oil Trade
- Anatomy of The Crude Oil Pricing System
- Prices on The Oil Markets
- The Importance of Energy Security and Geopolitics
DAY 3: Introductory Concepts in Oil Trading
- The Technical Analysis of Trading
- The Fundamental Analysis of Trading
- Trading on The Oil Markets
- The Spot Markets
- Spot Crude Oil Prices
- The Brent Market
- Indexing Crude Oil Prices
DAY 4: Petroleum Products Price Setting Mechanism using Financial Derivatives
- Hedging – Risk Management
- How are Prices Reported?
- The Physical Futures Markets
- The Financial Futures Markets
- The Historical Development of The Petroleum Exchanges
- Futures Contracts
- Pricing Structures: Backwardation and Contango
- The Limitations of The Futures Markets
DAY 5: Risk Management using Financial Derivative Swaps and Options
- The Definition of An Option
- The use of Options Contracts to protect the National Income of NOCs
- The Definition of a Swap
- The Historical Development of The Petroleum Exchanges
- USA, UK, Singapore
Certificates
- On successful completion of this training course, GLOMACS Certificate will be awarded to the delegates
- Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance
Accreditation
GLOMACS is registered with NASBA as a sponsor of Continuing Professional Education (CPE) on the National Registry of CPE Sponsors. NASBA have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.
All Training Seminars delivered by GLOMACS by default are eligible for CPE Credit.
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