Price Risk Management in the Oil Industry

This course will teach you how to identify and manage exposure to price risk. You'll trade the full range of derivative markets, including the live futures markets through online screen services. You'll also work with simulation software to learn about using options. Delegates compare the performance of different instruments over time, changing market conditions and learn how to choose the appropriate instrument to match their objectives. The course explains the workings of futures, forwards, swaps, options markets and how they can be used for hedging and price management purposes.

Suitability - Who should attend?

Anyone whose work is affected by changes in the international oil price including those in:

  • Supply, trading, risk management, refining, finance, transportation, E&P in the oil industry
  • Oil trading and distribution companies
  • Energy-related government departments
  • Purchasing, planning and finance in major energy consumers


By the end of the course delegates will be able to:

  • Identify price exposure in your company's activities
  • Analyse price charts
  • Trade futures, forward and swaps markets
  • Hedge cargoes and longer term positions using forwards, futures, swaps and options markets
  • Manage refinery margin risk
  • Use contracts for difference (CFDs) to manage contango/backwardation risk in the dated/paper brent markets
  • Separate price and supply and maintain control over pricing using EFPs and triggers
  • Examine and compare the cost and effectiveness of different option strategies

Training Course Content:

  • Identification of risk within the corporate position, futures markets, hedging with futures, spread trading, refinery margin hedging
  • Technical analysis of price charts, forward markets and CFDs, trading in crude oil forward markets, separation of price and supply, EFPs, hedging efficiency, introduction to options markets
  • Options hedging strategies, delta hedging, non-directional option strategies, intermediate options theory, using options pricing software, simulated options trading
  • Hedging with swaps and other over the counter instruments, trigger pricing, the role of the market maker, comparison of hedging strategies
  • Implementing a risk management strategy, principles of management and risk control, middle office role , VAR etc.

9th - 20th November 2015/ 7th -18th November 2016: London
23rd November - 4th December 2015 / 21st November - 2nd December 2016: Ghana Accra

Two weeks training: £3,750
One week course: £2,150