Trading Operations Practice

Course Summary
This course provides the detailed practices and techniques involved in successful trading operations in today's international crude and product markets.
It has been designed for front, middle and back office personnel who need a detailed insight into trading operation practices and emphasises the operational impacts to corporate profitability and risk. It will also appeal to personnel who have recently joined an oil trading group of an oil major, investment bank or commodity trading company.
Much of the work will be carried out in syndicate groups where teams will simulate real in-company practice, working with other delegates drawn from a wide background of disciplines in the industry.
The course commences with the progress of a trade, from verbal agreement between two traders, through the subsequent preparation of the contract, operation of the contract with chartering and nominations of the tanker, invoicing and presentation of documents, culminating in post contractual settlement of claims arising from the contract operation. Each area is subsequently discussed in detail with further presentations which also include topics such the quality and specifications of actively traded product groups; viz. gasoline and naphtha, middle distillates (diesel, gasoil and jet fuel) and residual fuels oils. Blending theory and practice, operation of storage and pipelines are also addressed.

Contracts

• The legal issues
  
• Structuring the terms of a contract
  
• Contracts and controls
  

Shipping

• Understanding of the basics and terminology
  
• Calculation of freight and Worldscale
  
• Chartering process and key charter party terms
  
• Vessel operations and shipping economics
  
• Demurrage
  

Contract Operational Procedures

• Nomination procedures
  
• Documents and the Bill of Lading
  
• Letters of credit and the banks

Quantity and Quality

• Measurement of quantity and quality
  
• Middle distillates, gasoil, diesel and jet kerosene
  
• Naphtha and gasoline
  
• Fuel oil and heavy feedstocks
  
• Blending, theory and practice
  

Logistics

• The Loading and discharging process
  
• Pipeline operations
  
• Storage - agreements and operations
  
• Transaction costs
  
• Losses and inspection