Global Drivers of Price and Quality in Residual/Bunker Fuel Markets: Investigating the Value Chain and Structural Changes

Course Summary
This course is designed to provide delegates with a comprehensive understanding of the production and the drivers of price and quality of fuel oil. Using this knowledge, the course then investigates the day-to-day aspects of the fuel and bunker markets and describes the supply chain and factors that influence it. In addition the course examines concerns of participants in the structural changes and the economic effects of such changes. Candidates will gain an understanding of why fuel prices and quality vary, and the effects of such volatility and how it can be mitigated.
On completion of the course all participants will have a thorough understanding of the day-to-day mechanics of the fuel market and in addition an understanding of the factors influencing the global market.

Suitability:
Those wishing to learn the basics of fuel oil trading or understand the interaction between fuel oil and the bunker industry will find this course ideal. In addition, the course should be considered essential for anyone entering or recently new to the bunker industry in terms of buying, selling, trading, broking or the service industry. Institutions currently involved in financial aspects of bunker and fuel oil activities would also benefit from the comprehensive coverage of this course.
Introduction

• Introduction
  
• Course outline
  
• Round robin
  
  

Supply

• Crude Oil properties and assays
  
• OPEC and non-OPEC
  
• Refining capacity and fuel production
  
• Fuel manufacture
  

Demand

• Sectorial fuel use
  
• Regional fuel use
  
• Future trends
  
• S&D forum
  

Price

• Fuel and the refinery economics
  
• Specifications
  
• Characteristics affecting price
  
• Pricing methodology
  
• Price variations
  
• Fuel cracks
  

Price Drivers

• Fuel oil trading including hedging, storage, arbitrage, blending and spreads
  
• The market participants
  
• Physical trading
  
• Derivative trading
  
• Fuel oil from producer to consumer
  
• Price drivers
  
• Ho- to avoid /mitigate some of the effects
  
• Price Forum
  

Structural Changes

• Refinery upgrading
  
• Demand shifts
  
• Bunker spec changes
  
• Demand balances
  
• Emission trading
  
• Future refinery operations
  
• Future pricing
  
• Buyers strategy