Maritime Week Americas 2014 • Panama

Bunker Price Risk Management

 

Tuesday 20 May 2014 ~ Half-day Morning Seminar

This half-day seminar will provide attendees an overview of hedging tools and risk management in the oil and bunker fuels market.  Attendees will learn how to create a hedging policy and how to execute a hedge plan and assess its success.  Current examples and case studies will be used to apply ‘real world’ situations to hedging and managing both physical barrel and financial risk. Questions and discussion will be held throughout to focus on areas of particular interest as they arise.

Please note: the programme below is preliminary and may be subject to change.

MONDAY 19 MAY 2014
09:00 Registration
09:15 Introduction
09:30

Oil and refined products market overview

  • Oil market fundamentals
  • Trends in oil markets and refining
10:00

What is price risk mangement?

Why hedge?

  • What is it?
  • Why would I do it?
  • History of hedging and spectacular blow ups

Basic concepts and terms

  • Forwards, Futures, swaps, options
  • Applications in marine fuel industry
  • Basis risk and common problems

Tools of the trade overview

  • Swaps vs fixed price agreements (FPA)
  • Floors and ceilings, min and max

Speculation versus risk management

  • Systems and controls for managers
  • Accounting issues
10:45 Networking Coffee Break
11:15

Swaps

  • Terminology
  • Pricing
  • Contango/carry market/normal market, backwardation
  • Settlement and cash flows
  • Credit and margin
  • Strategies and examples
11:45

Options

  • Termionology
  • Pricing
  • Settlement and cash flows
  • Credit and margin
  • Strategies and examples
    • Plain vanilla
    • Exotics
12:15

Creating a hedging policy

  • Setting and understanding rules
  • Control systems and reporting
  • Review and renew
12:30

Working with counterparties

  • Financial
  • Physical
  • Regulated exchanges
12:45

Execution

  • Advisors and brokers
  • Orders
  • Paper trails, records and compliance
13:00

Questions and Wrap-Up


DIAMOND SPONSORS

 meyers group

PLATINUM SPONSORS

 ecopetrol

 ow bunker

GOLD SPONSOR

 navalmex

SILVER SPONSORS

 endofa

 cepsa

 innospec

 codis

 platts

BRONZE SPONSORS

 quinn oil

 bp marine

 nonox

 vt maritime logistics

 distri candelaria

ct energia

For More Information


Please contact:
Elena Melis
Tel: +44 1295 814455
Email: events@petrospot.com

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