energy price risk - smu academy · john driscoll spent nearly 40 years in the us and singapore...
TRANSCRIPT
SMU ACADEMY
PROFESSIONAL
Hedging and Management of Energy Price Risk
Risk Management – Art or Science?
In the wake of the sharp plunge in oil prices and the ensuing period of
volatility, many players face potential losses if they are on the wrong side of
trade. Given the complexity of energy trades, professionals involved in the
trading and financing value chain need to possess vital knowledge to
manage risk exposures and ensure sustained profitability.
The 2-day intensive workshop aims to impart practical approaches to
identify, manage and hedge energy price risks in real life situations.
Participants will analyze cases involving oil producers, refiners and
consumers, and trade simulation exercises to gain hands-on experience.
Highlights
Understand market dynamics of physical & paper trades
Know about hedging tools for protection & opportunities
Explore instruments to manage flat price, spreads & basis risk
Learn about hedging strategies, risk & limitations
Gain hands-on experience via simulation exercises & case studies
Programme Fee Programme Date For Enquiries
S$1,926(incl GST) 11 & 12 Jul 2019 Jaclyn Mah | +65 6828 0254
Programme Code: CRS-N-0045005 Diane Sew | +65 6808 5117
Net fee payable
Singaporeans and PRs: S$577.80
Singaporeans aged 40 years and above: S$217.80
SkillsFuture Credit may be used. T&Cs apply.
Oil Markets, Supply Chains & Risk Management
Risk management: art or science? Behaviours & biases The VULCA effect Market structures & price discovery
What Is Hedging?
Two dimensions: protection & opportunity Hedging in oil supply chains Producers: sell side hedging Refiners: margin hedging Consumers: buy side hedging
Oil Prices, Benchmarks & Hedging
Spot markets & price benchmarks Oil price sources & methodologies Trouble with the Curve & forward values Flat price, spreads & basis risk
Oil Price Hedging Strategies
Futures, forwards, swaps & options BFOE & Singapore MOC window Hedging with EFP, EFS, CFD & DFL Hedging strategies in practice Supply chains & price discovery
academy.smu.edu.sg | [email protected] | +65 6828 0563
Trainer’s Biography
John Driscoll spent nearly 40 years in the US and Singapore energy sector, with senior managementexperience in supply, trading, energy publishing and price reporting for companies like Maxus, Tosco, Tomen& Ultramar, Mobil Asia and Argus. John retired in 2012 to engage in advisory, coaching and training.
Who Should Attend
Energy traders, corporate treasurers, finance directors keen to learn about hedging and risk management Relationship managers, corporate bankers and trade specialist who advise energy trading companies Professionals in middle and back office of banks and corporate, in functions such as credit, risk, audit
and operations, who are responsible for risk management of energy trades
Curriculum
Hedging in Contango Market Structure
Locking in forward premia Contango carry & space arbitrage Optimal hedging strategies Cost factors: the 4D’s and 5I’s
Paper vs. Physical Contracts for Oil
Counterparty risks OTC swaps & trade clearing Lesson in history: risk management limits Errors, misquotes & disputes Physical & paper pitfalls Risk breakdowns
Market on Close (MOC) Window
Real time trading, pricing & hedging Calculating MOPS values & strips Backwardation & supply squeezes Simulated MOC Window trade
Trends & Outlook
Use of technology to manage VULCA Structural changes & implications CTRM platforms and solutions Impacts of regulations & government oversight