Classroom Dates
30 Oct - 03 Nov 2023 London $5,950
19 - 23 Feb 2024 London $5,950

An oil trader is a dynamic and exciting profession that requires a combination of market knowledge, financial expertise, and risk management skills. Being an oil trader means being part of a dynamic industry that plays a crucial role in the global economy. Often traders work in high-energy work environments, thrive under pressure, and enjoy being part of a team that is constantly adapting to changing market conditions. Here, every day is an opportunity to learn and grow in this exciting field.

This Crude Oil Trader training course provides the knowledge and skills in analyzing market trends, understanding contracts, and managing risk associated with oil trading activities. It is useful for traders in energy companies, banks, hedge funds, and other financial institutions. Oil traders need to have a deep understanding of the oil industry and its supply and demand dynamics, as well as the geopolitical factors that affect oil prices. We further discuss analytical skills, decisions judgment, and skills to manage complex financial instruments.

This Energy Training Centre training course will highlight:

  • Oil traders as value generators
  • Global oil markets and the geopolitics of the energy sector
  • Analytical skills in risk management and value creation
  • Market instruments for hedging risk and capitalizing on the upside opportunities
  • Financial concepts in oil trading

To buy and sell crude oil in the global marketplace, we need to have knowledge and skills in analyzing market trends, extract market information, and manage the risk associated with oil trading activities. We need to build foundations on understanding of the oil industry and its supply and demand dynamics, as well as the geopolitical factors that affect oil prices. We further complement this knowledge with analytical skills in corporate finance, decision and data analysis, and economics.

At the end of this Crude Oil Trader training course, you will learn to:

  • Appreciate the global dynamics of oil markets
  • Analyze price trends and use market information to inform price forecasts
  • Appreciate the role of market instruments like forwards, futures, and options
  • Use corporate financial concepts for analysis of trades and contracts
  • Use analysis to mitigate risks and support create value from opportunities

This Crude Oil Trader training course will use proven learning technology that has been implemented in the leading universities internationally (as well as in industrial settings) with considerable success. The sessions include powerpoint lectures, discussions, and guided real-world practice. The aim is to develop problem-solvers and effective decision makers rather than merely conveying information.

All firms aim to create value from their operations and crude oil traders are often the last link of the value chain. With market dynamics, the challenge is in good trading decision and superior analytical skills. The firms should be able to develop trading strategies that support their ventures.

This Crude Oil Trader training course trains individuals to:

  • Increase organization’s capabilities in crude oil trading
  • Possess the knowledge and skills to describe the key success factors for trading crude oil that are effective in enhancing value chain
  • Understand the business environment and the value creation from trading
  • Support the prudent decision-making process
  • Open doors to further opportunities

Gaining knowledge and skills in crude oil trading prepares an individual for a variety of positions. This is because the skills in analysis and the gained insights lead to improved decision-making and enhance the value of the person in an organization. This Crude Oil Trader training course prepares individuals for a more effective role within the trading and trading support. It further creates opportunities to grow within the energy industry.

This training course will enable the attendees to:

  • Prepare individuals for a role with wider insights and perspective
  • Give participants a more informed frame of the future in the energy industry
  • Lead to knowledge and skills with modern analytical tools
  • Enable participants to analyze complex investment decisions
  • Develop skills in understanding energy ventures and communicating decision insights

This Crude Oil Trader training course is suitable for traders, strategists, analysts, and economists — anyone who makes trading decisions or supports such decisions. It is also beneficial for investment bankers, management professionals, and investors.

This training course is suitable to a wide range of professionals but will greatly benefit:

  • Planners and forecasters
  • Market analysts
  • Energy traders
  • Economists using insights from crude oil trading
  • Individuals aspiring for management roles in crude oil trading
  • Energy managers, decision makers, and executives

Day One: The Fundamentals of Trading

  • Crude Oil Trading introduction: Physical and financial markets
  • Global Oil Markets
  • Reserves and probabilistic estimation of reserves
  • Supply and demand and market equilibrium
  • Theories of fair price and market trends
  • Market Trends: The level and scope of crude oil futures contracts 

Day Two: Uncertainty, Risk, and Upside Opportunity in Oil Markets 

  • Uncertainty: Using probability to encode uncertainty
  • The refining spread and pricing of crude oil
  • The regional natural gas markets, a deviation from global crude oil markets
  • Forward and futures contracts
  • Commodity exchanges
  • Risk management for corporations: Should they manage risk? 

Day Three: Market Instruments for Risk Management 

  • Price discovery mechanism
  • Forward and future contracts and insights for price forecast
  • The spot-forward relationship for commodities
  • Options contracts and their valuation challenges
  • Valuation Methods: Black-Scholes method and binomial lattice
  • Real options in the energy markets 

Day Four: Estimating the Stochastic Process for Crude Oil Prices 

  • Volatility of prices: Using a tutorial in spreadsheets
  • Historical volatility versus implied options volatility of crude oil prices
  • The random walk process
  • Mean reversion as a basic characteristic of commodities
  • Multi-factor models
  • Why stochastic processes? Value aspect of price behavior
  • Risk management tools and price behavior 

Day Five: Valuation and Hedging in Crude Oil Markets 

  • Hands on analytics: Simulation and binomial lattice
  • Practical experience and insights
  • The extrapolation of price trends
  • Hedging Strategies: Hedge and forget vs dynamic hedging
  • Summary and conclusions: Risk and reward are hand in hand


Our collaboration with PetroKnowledge aims to provide the best training services and benefits for our valued clients

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