Introduction

The global oil markets are complex, fast-moving, and influenced by a wide range of geopolitical, economic, and technical factors. Professionals engaged in oil supply, marketing, or trading must possess a deep understanding of pricing mechanisms, physical and paper markets, risk management tools, and strategic approaches to thrive in this volatile industry.

The "Oil Supply & Trading: Pricing, Markets, Strategies, & Hedging (Mennta)" training course, developed by Global Horizon Training Center, offers an immersive and practical learning experience tailored for professionals involved in the commercial aspects of oil trading. This course is especially beneficial for individuals from Marketing Departments, enabling them to better understand how market dynamics impact product positioning, pricing, and commercial strategy.

Course Objectives

By the end of this course, participants will be able to:

• Understand the structure and operation of global crude and refined product markets.

• Interpret oil pricing benchmarks, indices, and differentials.

• Identify the key participants, instruments, and strategies in oil trading.

• Develop basic trading strategies and risk mitigation techniques.

• Apply hedging tools, including futures, options, and swaps.

• Recognize the impact of supply chain logistics on oil pricing and strategy.

• Bridge marketing and trading functions for business growth.

Course Methodology

The program is highly interactive and incorporates:

• Instructor-led sessions with real-time market data analysis

• Case studies from international trading hubs and companies

• Trading simulation exercises (paper trades and scenario planning)

• Group activities and strategy development workshops

• Visual tools: trade flows, pricing charts, and risk exposure matrices

• Role-play activities involving marketing and trading interactions

Organizational Impact

Organizations will benefit from:

• Improved alignment between marketing, supply, and trading teams

• Enhanced ability to respond to oil market volatility

• Better strategic planning through integrated market knowledge

• More effective risk management practices using financial instruments

• Greater commercial agility and informed pricing decisions

Target Audience

This course is designed for professionals involved in:

• Marketing and Sales in the oil and energy sectors

• Crude oil and refined product trading

• Supply chain and logistics for oil products

• Commercial and planning teams in oil companies

• Risk management and financial planning

• Business analysts and investment professionals in energy

Outlines

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