Oil Price Risk Management and Hedging - CapGrow Ptd Ltd

Trading in the international oil markets introduces large, and at times, unexpected price volatility which can easily lead to large losses. Price risk management, hedging, is designed to reduce the price risks associated with trading and introduce an element of certainty to cash flows and profit/loss. This interactive two-day course is designed for delegate with little knowledge of the concept of hedging, allowing them to identify price risk and learn how to manage that risk through different financial instruments.

At the beginning of 2020 Brent was trading at $70/bbl. By the end of April it was at a low of $20/bbl but by June it back up to $37/bb/. Very few companies balance sheets have not been adversely affected by such volatility. Only those companies with a robust and sound price risk management policy will survive and thrive. This course will equip delegates with the knowledge to assess their company’s price risk and ask relevant question on the design and implementation of a price risk management policy and strategy.

By attending this course, you will be able to:

OBTAIN a thorough understanding of the structure of the energy markets
GAIN a comprehensive insight into the issues of price risk management
OBTAIN a clear and practical understanding of price risk
GAIN the knowledge and understanding of the derivative instruments used in risk management
GET a clear and practical understanding of price risk The advantages and disadvantages of different strategies

The course will benefit delegates who need a thorough grounding in all aspects of price risk management, including general managers and support staff:
• Physical energy traders
• Derivative traders
• Internal audit
• Legal and compliance personnel
• Hedge funds
• Portfolio managers
• Regulators