Crude Oil Evaluation, Economics & Pricing Course


Course Description

This course is designed to give participants an overview of crude oil and its value in refining configuration and pricing assessment in global oil markets. It will give participants a practical knowledge of how various grades of crude oil are worth to different refiners and how they are valued and traded.

During the course, the content will focus mainly on Brent crude covering physical, futures and forward markets including hedging and risk management. Other topics that will be investigated are marketing, supply and trading elements, including marine transportation and freight economics.


Filling the gap between theory and practice, this course provides participants with the skills needed to understand the physical and commercial aspects of crude oil. Covering the key factors, participants will learn how to ascertain the true value in a commercial and dynamic environment

Suitability – Who should attend?

Technical and non-technical professionals from oil & gas industry and business and financial institutions, who wish to understand in a simple and jargon-free language the physical aspects of crude oil sales, supply and trading business. Those who want to gain commercial insight of how crude oil is converted into different refined products and how they are priced/valued in open markets for supply and trading.

Oil and Gas Engineers

Planning Engineers / Managers

Oil Marketing Managers / Traders

New Entrants to Refinery or Petroleum industry

Business Analysts

Banking and Government Officials

Finance and Accounting Analysts

Training Course Content

  • Overview
  • Introduction to oil industry
  • Overview of global crude supply/demand
  • Introduction to crude oil production
  • Crude Oil Characteristics
  • Crude oil characteristics
  • Benchmark crudes
  • Significance of light/heavy and sweet/sour crudes
  • Crude, condensate and other feedstocks
  • Crude Oil Refining
  • Fundamentals of refining process
  • Refinery configuration
  • Refining margins
  • Refining operations and optimization
  • Impact of configuration on refining economics
  • Exercises / Case Study

Evaluating Crudes

  • Crude oil evaluation, selection and assessments
  • 3-2-1 crack spread
  • Understanding refined products
  • Pricing Mechanism
  • Introduction to crude oil pricing
  • Introduction to products pricing
  • Physical markets and regional hubs
  • Role of Exchange and Benchmark
  • Understanding Brent and North Sea crude markets
  • Understanding dynamics of US domestic and Canadian crudes
  • Crude Oil Trading
  • Physical, Forward and Futures markets
  • Price exposure and risk management
  • Exercise / Case Study

Crude Oil Trading (Cont’d)

  • Specifics of physical oil trading
  • International crude oil trading
  • Crude Oil Transportation
  • Crude supply and transportation
  • Marine freight and economics
  • Backhaul supply economics
  • Crude processing deals
  • Crude Oil Contracts
  • Crude oil contract negotiations
  • Types of oil contracts – legal and commercial implications
  • Regional market dynamics
  • Role of OPEC and geopolitics
  • Developing crude oil supply plans
  • Exercise / Case Study
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