Understand commodity derivatives and financial markets based on the physical underlying markets
Acquire the skills to use commodity derivatives
Learn how to think about and invest in commodity markets
Introduction: Are commodities a liquid and transparent investment?
- Price movements and regulations: Who controls the commodity markets?
- Commodities and the US Dollar
- Cash and derivative markets: a look at the similarities and differences in various commodities
Case Study: Analysis of market quotes, price levels, and volumes
Energy Markets: oil, gas, power, coal
- Basics of physical oil: exploration, production, refining
- Natural gas: system constraints and networks
- Electricity: generation and regional markets
- Coal: the future of the most polluting energy source
Transport and storage of energy
Components and behaviour of energy prices: What makes prices move?
- Price bases: physical markets and financial markets
- Tenure: can we predict prices?
Who are the major players in energy? And what is their influence?
- Producers, refiners, and generators
- Consumers, traders, and investors
Case Study: Analyse and predict price movements.
What can the past tell us about prices?
Commodity futures indices:
- How are futures markets set up? And how do they work?
- Major commodity indices
Case Study: A look at Intercontinental Exchange
Saxo Bank simulation
Commodity derivatives: Forwards, Futures, Swaps, and Options
- Forwards: a dying breed?
- Futures markets:
- Futures and physical: spreads and basis risk
- Market price structure: Backwardation and Contango
- Typical strategies for the major players: producers, consumers, traders and investors
- Swaps: over the counter derivatives
- Definition and pricing: index and publication based swaps
- Swaps in oil, gas and power
- Options: the tricky derivatives
- Fundamentals of options and option pricing: a very basic view
- Option strategies and structures
Case Study: Define and discuss hedging and speculative uses of derivatives for a variety of objectives.
Energy products specialist, Christopher has gained extensive experience in commodities markets by exercising for almost twenty years, both on physics and derivatives in Europe and Asia.