Oil Market Pricing Interrelationships
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Oil prices have been in a major price recovery since early 2009 even though the fundamentals are once again biased toward the bearish side and the global economy is poised to enter a period of slow growth. Why is this happening and is this the so called new normal? Many factors are driving the price of oil to its current levels...including the value of equities and direction of the major currency markets and it all comes down to the myriad of the various non-oil and oil inter-market relationships that continue to impact the sentiment of the trading and hedging sectors and ultimately the price of oil. We will sort out the important relationships that you will need to navigate through the volatile waters called the international oil complex as we enter the next phase of the global economic recovery.
This 2-day course will introduce you to all of the important interrelationships from the various macro and micro fundamentals to the intricacies of the various financial and economic indicators. The course approaches the price and direction of oil from many perspectives…supply, demand, inventories, value of the US dollar, global equities as well as various economic indicators.
It also approaches the oil market with a view of the main elements that not only impact price and volatility but how these elements are also part of the decision making tools needed to manage price, volatility and most importantly the margins of your particular business.
What You Will Learn
This course inter-twines the relationships of:
1. Market macro & micro fundamentals
2. Supply, Demand and inventories
3. Global equity markets
4. Us dollar and its relationship to currencies from around the world
5. The impact of economic growth and contraction and how the various indicators provide guidance as to the direction of oil prices.
6. Techniques to put all of the above pieces together
Based on the above approach and you will be exposed to specific inter-market analysis for each and every step in the process of developing an oil price strategy. This will allow you to develop your own specific understanding of the many drivers of oil prices and how that information is suited to meet the objectives of your company.
Each of the individual sessions will include numerous real life examples from the perspective of each of the areas mentioned above. These examples will bring the theory into reality.
You will be able to understand the myriad of the normal or what some are calling the new normal of what is moving oil prices on a daily basis. Some of the areas we will focus on are:
- All about the economics of oil trading.
- Macro economics of worldwide energy complex. What is driving oil prices?
- The impact on price from the supply side.
- The impact on price from the demand side.
- The impact on price from the inventory side.
- How the micro fundamentals from around the globe impact price.
- How the non-economic drivers like shipping and transportation impact price.
- How the myriad of various economies both emerging and developed impact price.
- How various Central Bank strategies that are employed to manage the global economies impact on oil prices.
- The performance of oil prices under various economic cycles.
- The impact of oil prices from moves in the various global equity markets.
- How and why the US dollar impacts prices.
- What is the impact on prices if OPEC moves away from the US dollar as the currency for dealing in oil.
- How and why other commodities impact oil prices.
- Is oil the new inflation hedge?
Who Should Attend
Major Oil & Large Independent:
* Supply & Distribution personnel
* Exchange Personnel
* Risk Managers
* Wholesale and Commercial managers
Jobbers/Diesel Fuel Distributors
Every level of the Trading community both physical & financial.
Truck Stop & Retail Chain Operators:
* Fuel purchaser
* Trucking Companies
* Barge and Shipping Companies
* Commercial and Private Airline Fleets
* Government agencies – Federal – State- Municipal
* Shipping companies
Lenders to the Oil Industry
Futures & OTC Brokers