An Interactive 5-Day Training Course
Petroleum Products Trader
Managing Crude Oil and Refinery Products Trading, Marketing, and Hedging
Course Overview
This Petroleum Products Trader training course is designed to enhance your understanding of effective marketing strategies within the highly competitive oil industry. Regardless of your current level of experience in oil marketing, developing the skills to differentiate, promote, and sell your products and services is crucial for standing out in your role.
By improving your marketing abilities, you not only advance your own career but also contribute significantly to your organization's success, especially within this technically demanding sector. Effective marketing decision-making goes beyond simply utilizing available information. It involves the critical ability to navigate and find commercially viable solutions amidst diverse and often complex parameters. This training course aims to equip you with these vital skills, ensuring you can meet and exceed the challenges in the dynamic world of oil marketing.
This Saudi GLOMACS Petroleum Products Trader training course will highlight:
- Petroleum Business Environment
- Crude Oil and Refined Products Physical Trading
- Spot, Forward, and Futures Markets
- Exchanges and their Market Organizations
- Derivative Products
Training Objectives
At the end of this Petroleum Products Trader training course, you will be able to:
- Analyze various oil trading markets, distinguishing them based on the nature of their transactions.
- Investigate the range of contract types in use, including long-term agreements, spot transactions, and forward contracts.
- Develop an understanding of the trade processes for both crude oil and refined petroleum products.
- Acquire knowledge of strategies for hedging against price variances in the market.
- Understand the fundamentals behind setting prices for crude oil and its derivatives.
- Gain insight into the principles of financial derivative instruments such as Swaps and Options.
Who should Attend?
This Saudi GLOMACS Petroleum Products Trader training course is suitable to a wide range of professionals, but will greatly benefit:
- Petroleum Trader
- Anyone in the petroleum or related industries seeking to enhance their understanding of crude oil, petroleum product trading, and pricing structures
- Professionals specializing in Petroleum Economics
- Entrepreneurs and Financial Experts in the Oil, Gas and Petrochemical field
- Members of Board and Senior Oil Executives
- Government Regulators in Oil Trading
- Individuals involved in Trading & Brokerage within the industry
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 and Overview of Petroleum Business
- The Industry Value Chain and Energy Markets
- Characteristics and challenges of the Oil and Gas Industry
- Porter’s Five Forces Model
- The Industry Competitive Environment
- Overview of oil and gas Market Structure
- Upstream Project life cycle
- Classification of Petroleum
- Price Drivers
- OPEC and Its Power
- PRMS System, Petroleum Proved Reserves, Production, Consumptions Trends
DAY 2: Upstream Refinery Business and Economics
- Upstream Project Profitability Measurements
- Profit and NCF after Tax
- Profitability indicators (NPV, IRR, CPI, and Payback)
- Commercial Requirements and Refinery Costs
- Refinery Performance
- Barrel per stream day (PSD)
- Barrel per calendar day (PCD)
- Refinery throughput
- Refinery Charged Volume
- Refinery Utilization
- Refinery Yields and Refined Products
- Refinery Economics
- Refinery Gross Margin
- Refinery Net Margin
- Refinery Netback
- Refinery Margin Application:
- Selecting the Crude Oil Quality
- Negotiating the Crude Oil Prices
- Market Selection
- Sweet verses Sour Crude
- Cracker vs. Cocker Configuration
- Crack Spread Philosophy
- 1:1 Crack Spread
- 3:2:1 Crack Spread
- 5:3:2 Crack Spread
- 6:3:2:1 Crack Spread
DAY 3: Crude Oil and Refined Product Trading
- Why are crude oil and the refined products traded? bullet point 2
- Delivered Prices
- Marker Crude
- Pricing Sources and Price Reporting Agencies
- Pricing Methods
- Official selling prices
- Fixed price
- Floating price
- Differential to a marker crude
- Futures price
- Exchange for physicals
- Pricing a Cargo of Crude Oil and Refined Products
- Crude Oil and Refined Product Markets
- North Sea Brent Trading Markets vs. WTI Markets.
- Dated and Forward Brent Markets.
- Spot Markets
- Derivative Markets
- Forward Markest
- Futures
- Options
- Long and Short Position in Derivative Markets
- Exchange Traded Markets and Exchange Organization
- CME vs ICE Exchanges
- Forward verses Futures Contracts
- Exchange Initial Margin and Maintenance Margin
- Open Interest and Trading Volume
- Successful and unsuccessful Markets
- Crude Oil and refined Products Futures Contracts Specifications
DAY 4: Hedging and Price Risk Management Using Futures
- Long Position Pay-Off Profile
- Short Position Pay- Off Profile
- Hedging Using Futures Contracts
- Anticipatory vs. Reverse Hedge
- Long Hedge vs. Short Hedge
- Crack Spread and refined Product Hedging
- Hedging Imperfections and Basis Risk
- Cross Hedging
- Regression Analysis Technique
DAY 5: Options and Swap Contracts
- What is the Option Contracts?
- Option Holder vs Option Writer
- Call Option vs Put Options
- Option Premium
- Options Trading
- European Options
- American Options
- Position of the Option Holder: ITM vs OTM vs ATM
- Options Trading Strategies
- Call Option Gross and Net Pay off
- Put Option Gross and Net Pay off
- Hedging Using Options
- Protective Strategies
- Covered Strategies
- Option Pricing Techniques
- Binomial Models
- Black-Scholes Model
- Swap Contracts
- Swap Contract Philosophy
- Fixed for Floating Swaps
- Contract for Differences Swaps (CFDs)
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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