Course Description:
This program designed for professionals engaged in different aspects of energy trading with emphasis on natural gas and crude oil trading.
The program provides not only the fundamentals but progresses to the real-life trading levels that expose participants to the drivers of energy commodity trading.
It also provides attendees with what constitutes risks in energy trading and exposes them to the ways and means by which these risks are mitigated thereby ensuring profitability despite significant and constantly changing market dynamics.
Attendees will be exposed to the various instruments that have proven indispensable over the years, which will be discussed in-depth along with to new methods of managing these ever-present risks.
The program is further enriched by numerous individual and group class exercises and case studies that support teaching and learning thereby providing adequate value for money for all attendees.
The sessions are conducted by seasoned and experienced former and current energy traders, whose wealth of experience will be at the disposal of all participants.
Content
- Introduction to Energy Trading
- Traded Energy Products (Crude Oil, Natural Gas &M Electricity)
- Energy Sources, Supply, Demand & Transportation
- Energy Market Drivers (Fundamental & Technical, Geopolitical & Freight & Emission.
- Market Behaviour & Arbitrage
- Physical Trading & Financial Trading:
- Physical Trading Operations
- Physical Commodities Pricing
- Specific & Generic Trading
- Physical & Real Options and the Criticality of Probability
- Financial Trading: Futures & Options, Forwards, Swaps & Derivatives
- Physical & Financial Trading, the Relationship
- Energy Trading Risks & Risk Mitigation:
- Trading Price Risk (Trading Long & Short)
- Basis & Outright Risk
- Energy Trading Risk Management (Risk Minimization & Mitigation):
- Hedging Physical Trading Risks with Various Instruments including Exposure Diagrams.
- Financial Risk Quantification: Price Modelling, Commodity Options
- Credit Risk & Mitigation
- Valuation of Value-at-Risk
- Energy Trading & The Role of Other Trading Partners
- Role of Refiners & Refinery Economics
- Financial Institutions & Energy Commodity Traders and Price Hedging
- Power & Gas Balancing
- Energy Risk Management Strategies
- Regulatory Framework Strategy
- Legal Framework Strategy
- Portfolio Value-at-Risk Measurement & Mitigation
