+971 2 6266614




Course: Energy Trading, Hedging and Risk Management

Date                 : 25th of October to 29th of October 2015
Location         : Abu Dhabi
Price                 : $3750
Registration : Online Registration
Contact           : +971 2 6266614

Learning Objective

You will review the key market drivers for the Global Oil markets; the derivative markets that can help manage the volatility in the markets, and gain insight and practical guidance on how to manage yourself as a trader in the markets with the help of our experienced training team. You will learn practical application of market price analysis techniques and how to apply them in scenarios for the improvement of supply chain management, trading, and improving margins as an exported and importer.  All of this practical skill tested during the course in virtual trading games and exercises.

Learning outcomes

How to analyse the international oil markets, create a scenario on forward price movement, develop a hedging and trading plan, select appropriate derivative structure for the market scenario and learn how to control the trading and market emotions as an individual using disciplined structure techniques to approaching the market.

Why should attend

Management, traders, shipping and supply chain management personnel, finance, risk management, contract negotiators, terminal operators, international market analysis, forecasting personnel.


Course Overview

Day 1

Global Energy Markets

  • Market outlook balance 2015/2016 supply demand drivers
  • Review of energy price behaviour
  • Forward curve analysis
  • Using different derivative instruments

Key crude oil and gas pricing indexes and arbitrages

  • Types of strategies and approaches
  • Strategy case studies: ICE Brent vs ICE WTI, Brent vs Dubai Oman crude
  • Key risk parameters
  • USDX

Review of derivative markets and contract

Clearing of trades
Financing of hedging positions
Swaps
Futures
Options


Day 2

Hedging to Protect revenues
  • Strategy Workshop: End User, Producer, Utility, Physical trader scenario

Options & Risk Management Approaches

  • Using energy options: hedging
  • Review of option types
  • Understanding option payoffs, risk management, market risk management in energy markets

Day 3

Managing the Trading Emotions

  • Trader mindsets
  • Trading plans and removing the emotional factor
  • Taking a loss - Taking a profit
  • Communication skills
  • Market conspiracy - you versus the market

Oil price tactical analysis for hedging and trading
Charts

  • Chart construction
  • Line, Bar and Candlestick charts

Chart patterns

  • Support and resistance
  • Trading ranges
  • Tops/bottoms
  • Breakouts
  • Gaps
  • Fibonacci

Analysing Spread Charts

  • Support and resistance
  • Trading ranges

VIP (Volume, Open Interest & Price)

  • VIP Patterns supporting Price trends

Technical indicators

  • Moving averages
  • MACD
  • Relative Strength Indicator (RSI)
  • Stochastic
  • Bollinger Bands

Trading Methodologies & Approaches

  • The magic number 3
  • Pivot Numbers
  • US Dollar Index
  • Combinations of Technical Tools applied to: Oil Markets

Analysis techniques of Physical Oil Data PLATTS

  • The CACT Method
  • Trend and patterns of 3
  • Pivot Numbers
  • US Dollar Index
  • Combinations of Technical Tools applied to: Oil Markets

Analysis techniques of Physical Oil Data PLATTS

  • The CACT Method
  • Trend and patterns of 3
  • Predicted High
  • Predicted Low
  • Introduction to Chart Patterns Price Continuation and Price Reversal Patterns
  • Head and shoulders
  • Spikes and reversals
  • Double and triple tops
  • Triangles, rectangles and wedges
  • Pennants and flags
  • The AV signal

Day 4

Hedging simulation game - Group Exercise

  • Delegates will operate an integrated oil company, operating storage, hedging price risk, and an operating refinery, reacting to live news feed.

Trading in live with market - applying analytics in short term market. Beat the Platts pricing window.


Day 5

Designing policies and procedures around market risk, credit risk and operational risks

  • Communicating and enforcing the policies

Risk management

  • Understanding and interpreting value at risk measures, VaR
  • Overview of methodologies: Analytic, Monte Carlo and historical simulation
  • Risk Reports - Enhancing exposure reports with risk analysis.

Stress tests in energy markets

  • Stress tests as a complementary tool to VaR and other market risk measures
  • Types of stress tests and main applications

Integrating liquidity, credit and operational risk in the formal risk management process

 

Course Facilitators

Prof. TOM JAMES
Co-Founder & Managing Director - Navitas Resources Ltd – London/Dubai/Singapore/Africa
Professor Tom James is the Co-Founder and Managing Director of Navitas Resources Ltd. He is based in London, United Kingdom.
Navitas Resources (NR) is an Energy & Natural Resources knowledge based services group offering trading and risk management solutions for Industry. It was established in Singapore in 2009. Clients include many of the world's major energy, mining firms, investment banks, industrial, and state owned enterprises in this sector. Navitas Resources has offices in Singapore, India, and United Arab Emirates, and an alliance partnership network that gives it a global reach.

Tom has been the Petronet LNG Chair Professor at the University of Petroleum & Energy Studies in Asia for 8 years, Is an Executive Tutor for the MBA Oil & Gas programme at Middlesex University in the UK, a visiting lecturer at the Singapore Management University and is a published author with Wiley Finance and Palgrave Macmillan on numerous Commodity Trading & Investment related topics. He is on the advisory board of the Cass Business School one of the world’s leading MBA universities with campuses in London and Dubai.

His work in academia has always been in parallel to an active career as an International Energy & Natural Resources Executive having built up over 25 years of experience in Trading, Risk Management, & Investment Management roles at investment banks, private investment companies and multi-national Commodity producers, traders and consumers. He works regularly for Governments in policy / strategy in markets and for multi-national corporations in the Oil, Gas, LNG, Renewable, Biofuels and Agri Commodity sector.

His career has given him the opportunity to prove his abilities in leading, motivating & building successful teams of traders & developing profitable cross-asset strategies and in 2011 he was shortlisted in the final top 5 candidates for the global personal achievement award by the Energy Institute based in the UK.

In 2013 he launched the Investment Strategy & Fund Management group of Navitas Resources applying its proprietary analytical methodologies to support investors and risk managers alike on opportunities and threats in commodity market price movements.
He is a regular commentator on Market Trends for International News channels and is a weekly contributor to the CNBC television oil market analysis review.



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