Oil Supply & Trading: Pricing, Markets, Strategies, & Hedging (Mennta)

Day 1: Global Oil Markets Overview

• Structure of the global oil industry

• Major players: OPEC, non-OPEC, trading houses

• Supply and demand dynamics

• Crude oil types and quality differentials

• Market cycles and economic indicators

Day 2: Price Formation & Benchmarking

• Physical vs. paper market

• Crude pricing benchmarks: Brent, WTI, Dubai

• Product benchmarks: Platts, Argus

• Price discovery mechanisms

• Factors influencing price volatility

Day 3: Oil Trading Fundamentals

• Physical trading vs. speculative trading

• Roles of traders, marketers, brokers

• Trade documentation and Incoterms

• Pricing structures: fixed, floating, formula-based

• Exercise: Reading and evaluating a spot trade contract

Day 4: Oil Supply Logistics and Arbitrage

• Tanker types and shipping routes

• Time charter vs. spot freight

• Freight economics and freight rates

• Geographic arbitrage and blending strategies

• Case Study: Trading Opportunity Evaluation

Day 5: Hedging Tools – Futures

• Introduction to hedging and risk exposure

• Futures markets: ICE, NYMEX, CME

• Margining and settlement

• Designing a simple hedge strategy

• Group Exercise: Futures hedge planning

Day 6: Hedging Tools – Options and Swaps

• Options basics: calls, puts, premiums

• Option strategies: collars, straddles, spreads

• Swaps: pricing and settlement

• Scenario Workshop: Options-based price protection

Day 7: Trading Strategies & Speculation

• Technical vs. fundamental analysis

• Spread trading and arbitrage

• Storage economics and contango/backwardation

• Building a trading portfolio

• Simulation: Speculative vs. hedging strategies

Day 8: Risk Management in Oil Trading

• Credit, operational, and market risk in trading

• Risk metrics: VaR, exposure limits, sensitivity

• Risk governance frameworks

• Position limits and compliance

• Group Exercise: Designing a Risk Policy

Day 9: Commercial Contracts and Legal Aspects

• Sale & Purchase Agreements (SPA)

• Contract clauses: quality, delivery, liability

• Dispute resolution and legal risks

• Force majeure and price review clauses

• Case Review: SPA negotiation breakdown

Day 10: Integrated Trading Simulation & Strategy Presentation

• Team trading simulation with real-time data

• Trading desk roles: trader, risk manager, marketer

• Executing physical trades and applying hedges

• Profit & Loss analysis

• Final Presentations: Strategy outcomes and lessons learned