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Our new PHYSICAL CARGO RISK MANAGEMENT Live Online Course is the comprehensive guide to crude oil physical cargo pricing.

We unravel step-by-step how physical crude oil is priced and traded. Geographical arbitrage, the associated price risks, and how best to manage them. How to manage price risks on cargoes with different pricing mechanisms, and finally the importance of settlement prices and pricing windows, and how they work.

Over two 2-hour live sessions over 2-days, our ex-commodity trading experts will deconstruct each concept; making them relatable to practical situations in the current market environment.

Individuals will have access to IGNITE – our unique trading simulator to test understanding by practicing realistic trades such as Oseberg, Forcados, Cabinda, Forties, Stratfjord, Cusiana and Oriente.

This course is suitable for individuals comfortable with the oil paper markets, but are seeking a greater understanding of the physical markets. Courses are available in Feb 8-9 and Feb 22-23 2022

To book this new course, or our Arbitrage, Storage or Hedging Live Online courses, click here

Course Overview

Price Exposures: Physical cargo trading overview, physical delivery terms, supply influence factors, demand factors, crude oil quality, contractual considerations, price reporting agencies overview, floating prices and benchmark prices, crude oil differential trading overview

Arbitrage: Physical arbitrage overview, different aspects of crude oil, voyage chartering, time charter, bareboat charter, Contract of affreightment, worldscale overview, operational costs, financial risks, when to arbitrage, netback calculation

​Hedging: Why hedge, basis risk, swaps as hedging instruments, types of hedging, hedging a fixed price cargoes, hedging a floating price cargoes, operational impact on pricing

Settlement Prices and Pricing Windows: what are settlement prices and why are they important, settlement prices determination, price reporting agency settlement assessment methods, history of market on close (MOC) and pricing windows, MOC fundamentals/timeline, Pros and cons of pricing windows, pricing window methodologies, pricing window in action, hedging in the pricing window, pricing window trading strategies