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Introduction to Petroleum Hedging

This primer provides a practical understanding of petroleum hedging and energy price risk management for those with limited or no knowledge of the subject. The focus is on CME Group’s NYMEX exchange-traded instruments and begins with a thorough understanding of the exchange itself. Futures contracts and options on futures are defined and used in relevant industry examples and in in-class exercises to learn the basics of energy price risk management. We will connect the dots between the financial aspects of the futures market and the physical market where product is consumed. Introductions will be made to other topics such as the over-the-counter market and related instruments. This course simplifies and removes the mystery of what many consider to be an intimidating subject.

Full Course Description
  • Hedging and risk management defined.
  • NYMEX market basics and functionality.
  • Futures contracts and options on futures.
  • Defining risk and hedge objectives.
  • Forward month trading and curve influence.
  • Marked-to-market accounting.
  • Over-the-counter swaps.

Introduction to Petroleum Hedging is designed to benefit a full spectrum of attendees, from those with only a passing curiosity on the subject to those needing hard and fast tips, tools and techniques they can implement now. Trucking companies, private fleets, construction companies, refiners and marketers, downstream petroleum jobbers, and petroleum end-users and consumers will all benefit from this macro-level course.

Strongly consider attending if you fit one of the following categories:

  • Diesel-powered fleets
  • Gasoline-powered fleets
  • Petroleum jobber personnel
  • Retail chain personnel
  • Oil company management and staff
  • Pipeline management and staff
  • Terminal operations
  • Schedulers
  • Interdepartmental transfers
  • Finance management and staff
  • Administrative personnel
  • Utilities
  • Human resource personnel
  • New/transferred hires from mergers
  • New/transferred hires from acquisition
  • Anyone new to the industry
  • Those considering entering the industry
  • Students and academics
  • Media
Industry Segment
Course Level
Introductory to Intermediate
CPE Credits
8
EMI Credits
3