Day 1 • Wednesday, September 24, 2008

 

8:30 – 9:00 a.m.

Registration & 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 Tools

We’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 Contracts

Now 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 market-to-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 Basis

The 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 - Quiz

We’ll test your knowledge so far and review your results to make sure you have the basic hedging concepts down.

 

 

 

 

 

REGISTER NOW!
\