Bunker Trading, Price Risk Management & Operations

Course details

Players in the global shipping industry are constantly grappling with ways to retool their business in a constantly changing business environment. Fuel is a major cost component for shipping companies, and it is the most volatile component within the business model. For now, lower revenue can be partially offset by lower bunker prices; however, when fuel prices head back up, ship operators need to protect against rising business costs. Fuel price and key risk management strategies can have a profound influence on everything from short term cash flow to overall financial performance.

Managing exposure requires an in-depth knowledge of the complexities of the energy and financial markets and access to all the right information. This comprehensive 3 day course in collaboration with Channoil will provide you with a sound working knowledge of international bunker trading, applied risk management and related business activities.

By attending this training course, you will be able to understand

• The process of converting crude oil into bunker fuels
• Pricing of bunker fuels
• Trading techniques and understanding contracts
• Price risk management for bunker fuels suppliers and users.
• Measurement and quality control of bunker fuels
• Bunker fuels trading simulation

COURSE OUTLINE

DAY 1

• INTRODUCTION
• OIL MARKETS & OIL TRADING
• CRUDE & OIL REFINING
• CRUDE OIL VALUATION
• SHIPPING / FREIGHT Tankers – types and characteristics
• OIL PRODUCTS / BLENDING
• OIL PRICING MECHANISMS

DAY 2

• PURCHASE & SALE CONTRACTS
• DOING A DEAL
• NON- TANKER LOGISTICS
• FORWARDS AND FUTURES MARKETS
• PRICE RISK, LONG & SHORT
• HEDGING

DAY 3

• MARKET STRUCTURE AND TRADING STRATEGIES
• ARBITRAGE TRADING
• BUNKER FUELS REGULATIONS & STANDARDS
• BUNKER BUSINESS PROFITABILITY
• MANAGEMENT ISSUES
• COURSE RECAP, DISCUSSIONS and FEEDBACK