Trading in oil futures and
options
Trading in oil futures and
options is an introduction to price risk management in the worldwide oil industry. With
numerous practical examples, it requires no prior knowledge and should be read by everyone
involved in the industry.
Although aimed primarily at
those new to risk management it will also provide a useful theoretical background to more
experienced managers and it will show those in other markets how the oil industry uses
futures and other derivatives.
This book concentrates on all
the risk management tools available to everyone from crude oil producer to refined product
consumer and explains the theory of futures, exchange options and over the counter
trading.
About the Author
Sally Clubley works as an oil
price consultant specialising in price risk management. She is a frequent lecturer at the
College of Petroleum and Energy Studies in Oxford and elsewhere, and also runs in-house
training programmes. For several years she was divisional director at E D & F Man
International and was on the Board of the International Petroleum Exchange.
Contents
The development of the world
oil industry
Oil refining
The markets
Entering the futures market
Strategies in futures trading
Options
Over-the-counter instruments
How the oil industry can use
the futures markets
Technical analysis
Contents
The development of the world
oil industry
Origins of the modern oil
industry
The major oil companies
The oil industry in the
twentieth century
The oil price rises of the
1970s
Changing price structure
Oil refining
The refining process
Changing patterns of demand
and consumption
The refining industry
The markets
Physical markets
The futures markets
The futures contracts
Propane
NYMEX No. 2 heating oil
contract
IPE gas oil contract
NYMEX leaded gasoline
contract
NYMEX crude oil contract
IPE crude oil contract
SIMEX fuel oil market
Natural gas
Options
The paper refinery
Possible new contracts
Electronic trading
The future
Entering the futures market
The decision to trade
Choosing a broker
Clearing
Futures commissions
In-house administration
The mechanics of futures
trading
Open outcry
Orders
Strategies in futures trading
Hedging
Spreads
Arbitrage
Exchange for physicals
Options
Buying options
Selling options
Option strategies
Incorporating physical or
futures
Delta hedging
Market making in options
Over-the-counter instruments
Swaps
CFDs
Partials
Trigger pricing
Options
Swaptions
Embedded options
How the oil industry can use
the futures markets
Supply department
The producer
The refiner
The traders
The marketing department
The distributor and large
consumer
Exchange or OTC?
Technical analysiS
160 pages