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GSU4 Energy Resources Trading on World Market

GSU4 Energy Resources Trading on World Market

Course code: 
GSU4
Course name: 
Energy Resources Trading on World Market
Program of study: 
Master of Science in Sustainable Energy Logistics
Course name in Norwegian Bokmål: 
Energy Resources Trading on World Market
Course name in Norwegian Nynorsk: 
Energy Resources Trading on World Market
Campus: 
Moscow
Credits: 
2
Level of study: 
Master
Teaching semester: 
2017 Spring
Assessment semester: 
2017 Spring
Language of instruction: 
English
Language of examination: 
English
Language of litterature: 
English
Recommended previous knowledge

Equivalent to requirements for the MSc program in logistics

Course content
  • Global and regional oil markets (structure of oil market: real, futures-trading, forward and derivatives markets; factors which influence the markets; demand, supply and prices and their collaborative engagement; participants of the global energy industry; regions, oil and gas trading flows, global petroleum trade centers)
  • Characteristics of oil and petroleum products (benchmark oil), differentiation with respect to quality, crude oil trade, storage and blending (history of oil origins and world market of crude oil; oil benchmarks; units of measurement, API (American petroleum Institute); quality requirements in oil trading; crude oil trading - valuating commercial profit, netback pricing, procedures of contract)
  • Oil refining (geography of global oil refining, volumes, technical specificity in different countries; refining capacities in the world, demand and supply of them; choosing of benchmarks and main processes of refining, quality requirements, quality optimization)
  • Independent inspection and survey companies (main tasks and purposes of these companies in the global chain of oil industry; provided services on oil refineries, storages, rigs and transportation systems; methods and inspection procedures; leading world inspection and survey companies)
  • Crude oil pricing (evolution Trading strategies and trade financing (principles and specifics of oil and oil products trading in global and regional markets, interregional trade operations; futures prices structure, spreads, contango and backwardation; "bulls and bears"; arbitrage and pricing)of the pricing system in crude oil markets, demand and supply as the main pricing factor; pricing models, price technical, quotations and indices, specificity of formula pricing; sources of price estimation, their methodology and work with them in real-time mode; pricing process according to absolute reference prices, use of Platts, Argus quotations, pricing manipulations)
  • Forward and futures markets (history of the markets; main reasons and necessity of futures market development, terms for successful contracts; comparison of forward and futures contracts; overview of futures contracts on oil, gasoil and gasoline, EFP (exchange futures for physical), long and short terms)
  • Exchange business (history of exchange business and its development; commodity exchanges; goals and functions of oil commodity exchange; leading world oil exchanges; use of derivative financial instruments, risk hedging, gambling)
  • Price risks (interpretation of price risks, instruments of their control; risk hedging, gambling; price risks control in oil markets, including forwards, futures, swops and options; market of “CFD”; realization of risk management)
  • Derivative financial instruments (introduction to derivative financial instruments; use of derivative financial instruments in risk analyses; swaps and swap-options; crude swaps, basis swaps, fixed and liquid swaps; CFD as a part of swaps; "call" and "put" options)
Learning outcome

After the completing the course the student will get in-depth knowledge of oil and gas world trade.

Working and learning activities

One week of intensive teaching (15 hours), including practical exercises, trading games and cases.

Curriculum

Required reading is given in fronter at the semesterstart

Relevant litterature:

Jago, C., Bossley, L., Trading Refining Oil Products. A Consilience Guide, Consilience Energy Advisory Group Ltd, 2013.
Bossley, L., Trading Crude Oil. A Consilience Guide, Consilience Energy Advisory Group Ltd, 2013
Woenzel, S., The Oil Traders’ word(s), Author House Bloomington, 2012.
Katiukha, P., Compendium, 2015.

Form of assessmentGroupingDurationType of durationGrading scaleProportionCommentSupported materialSupport material
School assessmentIndividual2hoursLetter (A - F)75 -
Home assessmentIndividual -Letter (A - F)25 -
Vurderinger:
Form of assessment:School assessment
Grouping:Individual
Duration:2
Type of duration:hours
Grading scale:Letter (A - F)
Proportion:75
Comment:
Supported material:
Support material:-
Form of assessment:Home assessment
Grouping:Individual
Duration:
Type of duration:-
Grading scale:Letter (A - F)
Proportion:25
Comment:
Supported material:
Support material:-