“This information packed 3 days will make you view fuel procurement in a new light. It can take the fear out of the unknown and give you the tools to soften the hard times and thrive in the good.”
- Donovan Gaines, Purchasing Manager, ATC Leasing
“Excellent environment for learning new concepts to help manage our fuel costs.”
- Mike Ziebell, CFO,
Pate Dawson Co
FMU Graduates:
- 9Ware, Inc.
- Abbott Petroleum Products, Inc
- Acoma Business Enterprises
- Acord Transportation, Inc.
- Acorn Petroleum
- Act Transportation
- Advanced Disposal Services, Inc.
- AGE Refining Inc
- AG Lee Oil Company, Inc.
- Ahern Rentals
- Aidea
- Ajax Paving Industries of FL, LLC
- Al Warren Oil Company, Inc
- Alberta Fuel Distributors Inc.
- Albertson's
- Albina Fuel Company
- Aleut Enterprise Corp.
- Allsup Convenience Stores
- Aloha Petroleum, Ltd.
- American Ethanol
- American Refining Group
- American Trucking Association
- Anadarko Petroleum
- Anderes Oil, Inc.
- Anoz Inc
- Apex Bulk Commmodities, Inc.
- Arizona Dept. of Weights & Measures
- ARL Inc.
- Ashcraft Associates
Day 1 Wednesday, December 2, 2009
8:00 – 9:00 a.m.
Registration & Continental Breakfast
9:00 – 10:00 a.m.
Risk Management 101: Master the Basics There are dozens of factors that impact the price of gasoline and diesel. This overview details the fundamental variables that really matter. In order to protect margins, it’s critical to understand how the market got to where it is. You’ll discover:
- Refined products market challenges.
- Where the gasoline/diesel risk lies and how to identify it.
- Why hedging is so critical to your bottom line.
- The basics you must know to set up a hedging program.
10:00 – 11:00 a.m.
Rundown of Gasoline & Diesel Fuel Risk Management ToolsWe’ve identified what the risk is, now we’ll zero in on each tool available and explain the unique differences you need to know:
- Physical markets: identifying them and understanding their differences.
- Futures markets.
- Understanding counterparties and exchange-cleared swaps.
11:00 – 11:15 a.m.
Refreshment Break
11:15 a.m – 12:45 p.m.
Specific Hedging Tools Part 1: Basic Futures ContractsNow it’s time to analyze each specific hedging tool. We’ll focus on the NYMEX floor and bring to light the critical factors out of all that chaos:
- Futures contracts 101: why an understanding of futures contracts is so important.
- Hedge applications: long hedge vs. short hedge.
- Trading floor operations: how oil prices are created.
- Trading examples: how to read a statement, create a marked-to-the-market report, and interpret cash flow.
12:45 – 1:45 p.m.
Networking Luncheon
1:45 – 2:00 p.m.
Review of the Morning’s Key Concepts
2:00 – 2:45 p.m.
Specific Hedging Tools Part 2: Understanding & Interpreting BasisThe previous lessons focused on futures contracts. Now we will take a look at futures contracts in relation to cash markets:
- Basis: regional prices and their relation to the NYMEX.
- Differences in product specs: how different products move in relation to the NYMEX.
- Basis history: using the past to guide your purchasing decisions.
2:45 – 3:15 p.m.
Key Concept Review - QuizWe’ll test your knowledge so far and review your results to make sure you have the basic hedging concepts down.
