Crude Oil Trading and Price Risk Management

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Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia

Upcoming Course

Code Start Date End Date Location Cost Instructor Register

Past Course

Code Start Date End Date Location Cost Instructor Register
PST0255  25 Nov 2013  29 Nov 2013  Kuala Lumpur, Malaysia  SGD 5995  David Ford 
PST0255-201401  22 Sep 2014  26 Sep 2014  Singapore  SGD 5995  David Ford 
PST0255-201801  12 Mar 2018  16 Mar 2018  Kuala Lumpur, Malaysia  USD 4295  David Ford 
Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia

Having seen oil prices fall from $110 per barrel to under $40 per barrel, the importance of price risk management in oil trading has never been greater. The high volatility of oil prices has increased price risk since 2008/ 2009. In order to survive and thrive in this volatile market, hedging plays an ever
increasingly important role in crude oil trading. There are many different varieties and grades of crude oil and benchmarks being used as reference price for sellers and buyers of crude oil. It is important to know and recognize which one you should be using. Concept of hedging is crucial to identify price risk and reduce price risk associated with trading.

Our Crude Oil Trading & Price Risk Management provides the knowledge and understanding of the workings of the world of crude oil trading and introduce the complicated concept of hedging, to identify price risk and learn how to manage that risk through the different financial instruments available.

Course Design
This course is designed to give delegates an introduction to crude oil trading in a safe environment and to guide delegates through the complicated concept of hedging, allowing them to analyse and mitigate risk in crude oil market.

Includes Specific and Practical Case Studies
Participants will be guided through a combination of lecture, syndicate work, case studies and trading game to sharpen their ability to manage price risk and crude oil trading in this volatile market.

Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia

Day 1st

  • Trading markets
  • Supply and demand issues
  • Exercise: Supply and demand headlines
  • Trading Crude
  • Trading Game

Day 2nd

  • Crude evaluation and refining
  • Exercises: Calculating crude values using gross product worth (GPW), Valuing different crudes using spread values from a benchmark price
  • Oil products markets
  • Benchmarks
  • Brent
  • Pricing Methodology
  • Exercise: Technical analysis - a structural approach

Day 3rd

  • Trading Markets
  • Physical pricing mechanisms
  • Exercises: Calculating physical price volatility and the square root of time rule, Calculation of physical/derivative price correlation, Identification of price risk

Day 4th

  • Hedging
  • Futures
  • Pricing and Forward Curves
  • The Clearing House
  • Exchange of Futures for Physical (EFP)
  • Trigger Pricing and Basis Trading-A Form of Hedging
  • Exercise: Hedging with futures-with and without basis risk ; Hedging as producer, refiner,  consumer and trader using futures

Day 5th

  • Swaps
  • Hedging as a producer, refiner, consumer and trader using
  • Advanced hedging instruments Options
  • Hedging as a producer, refiner, consumer and trader using option
  • Designing a risk mangement programme
Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia
  • ANALYSE the market performance oil and gas investments and their future outlook
  • LEARN to trade products in the oil and gas market successfully
  • DEVELOP a thorough understanding of the various trading techniques and methods
  • IDENTIFY market risk and learn to control them effectively
  • APPLY practical strategies and technical analysis to mitigate risk factor in energy trading
  • LEVERAGE on energy derivatives to hedge prices and risk exposure
Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia

This course is designed for professionals who wish to enhance their knowledge in crude oil trading market and, including:

  • Energy, Oil & gas, Commodity traders
  • Trading Managers
  • Portfolio & Planning Managers
  • Oil & Gas Equity Analysts
  • Risk Consultants, Risk Managers
  • Credit Risk Analysts
  • Energy Trading Firms
  • Financial, Business & Commercial Analysts
  • Oil & Gas Financial Consultants
  • Oil & Gas Executives in Banking & Corporate Finance
Monday March 12, 2018 | David Ford | Kuala Lumpur, Malaysia

David Ford

Managing Director of Ridgeway Energy Consultancy Ltd


David has over 20 years of inancial experience in the petroleum industry. He was Managing Director of IPE Training Ltd, the training subsidiary of the Exchange. David established it in into a worldwide provider of quality energy training courses. David is the author of “An Investor’s Guide to Traded Options An Investor’s Guide to Traded Options” and “Mastering Exchange Traded Equity Derivatives Mastering Exchange Traded Equity Derivatives” and numerous newspaper and magazine articles.

After leaving the IPE David set up Ridgeway Energy Consultancy Ltd (REC). Since founding REC David has been involved in a number of international projects in China, Russia, Kazakhstan and Europe covering energy trading and risk management, OTC clearing on commodities, strategy and business organisational issues. 

David has lectured on energy topics across Europe, Russia, Kazakhstan, Dubai, Singapore, China and USA. He started working in the City of London for the London Traded Options Market (LTOM) a division of the London Stock Exchange. He moved to Wise Speke stockbrokers later.