Oil Spread Trading

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The oil industry is very complex and international, and since the worst economic downturn since the Great Depression it has become even more complex with many more drivers impacting the flat price on a daily if not hourly basis. The various interrelationships drive every aspect of this complex, industry and every trading, purchasing and hedging decision. That said the world of oil spread trading has not changed all that much during these very volatile and changing times.

This critical two-day course will give you an integrated framework for trading oil spread instruments from a financial and physical perspective.

During this course the attendees will achieve a very rigorous understanding of the what, who, and how of successfully trading oil spread instruments on the three main domestic and international oil trading venues: 1) Regulated futures and options 2)Bilateral and cleared derivatives markets 3)International physical crude oil and refined products markets.

The course is designed to help traders, managers and trading support personnel in the oil and trading industry gain a more detailed understanding of what are all of the spread instruments and tools and techniques available for trading the many different spreads and how they perform under various scenarios.

What You Will Learn

This intensive course covers many topics that are of special interest to oil traders from a spread trading perspective. The course has been designed from the perspective of an oil trader or a trader wanting more oil exposure in their portfolio from trading the large crude oil and refined products spread trading markets.

You will leave this course with a solid and immediately useful understanding of:

  • The various oil spread trading instruments, tools and techniques and what is encompassed in the profession of oil spread trading
  • How all of the tools and techniques work, and how they can be applied to the development of a successful spread trading program
  • The physical and technical tools and techniques at your disposal to trade and manage the ongoing volatility and the price impact of the various spread markets around the world
  • A view of the main elements of the various techniques used for spread trading from a disciplined perspective while quantifying and managing risk and coordinating with fundamental analysis
  • How to combine physical and technical indicators, approaches and techniques that work for the various oil spread markets around the world

The program is filled with an extraordinary amount of valuable information for traders at all levels. We will focus on the use of regulated futures and option market strategies as well as physicals and OTC. We will also use a series of examples (using current market data) to demonstrate the use of the principles of oil spread trading at every level of the oil infrastructure.  Real-time trading examples for many of the crude oil and refined products spreads will be discussed throughout the course.

Based upon the attendees' exposure, specific spread trading objectives will not only be discussed along with various strategies using both traditional physical crude oil and refined products markets and financial instruments, but we will actually demonstrate the various techniques with real time data. We will also give the attendees time to develop their own specific spread trading views and strategies using the knowledge base learned in the program.

This course assumes the attendee has some basic understanding of oil trading.

Who Should Attend

The course is applicable to all levels of the oil trading infrastructure as well as the trading community in general. Individuals in every functional area of responsibility in all trading industries whose trading or trading support decisions have significant financial impact will benefit from this program. Traders and managers will find the course highly beneficial. Some of the more specific areas follow:

  • Traders of any oil products
    Traders of any equities or commodity markets
    Major oil and large independents:
       - Refiners
       - Marketers
       - Supply and distribution personnel
       - Exchange personnel
       - Terminal managers
       - Risk managers
       - Wholesale and commercial managers
       - Traders
  • Energy wholesale/marketing companies
  • Jobbers
  • Retailer
  • Lenders to the oil trading industry
  • Futures and OTC brokers, especially brokers catering to the above companies
  • Accounting and financial personnel
  • Back and mid-office administrators of trading and hedging operations