Fundamentals of Bunker Supply, Demand, Pricing & Operations - BF1 

CPE Credits Awarded: 16
Categories: Oil Industry, Oil Supply and Trading, Shipping and Bunkering

Course Date Duration Venue Price Register by Date Register
25 Sep 2017 2 Days London, UK Country: gb
£ (GBP)2,020.00+20%VAT
25 Aug 2017

Gold Course

The bunker industry has become increasing challenging for all players. Residual fuel supplies are in decline as more and more of the oil barrel is cracked to produce lighter transportation fuels at a time when demand is rising again with the slow recovery in the global economy. The quality of bunker supplies has become an increasing issue and the lowering of sulphur limits in Emission Control Areas, effective 1 January 2015 will present an additional challenge to ship operators. Future pricing of bunker fuels also looks less certain following the decline in oil prices in the second half of 2014 raising the risks to both buyers and sellers.

This is an intensive two day course covering bunker fuel demand and supply, pricing, physical and paper trading, legislation, blending and testing for quality. Presentations by a team of experienced industry experts are combined with an exercise and case study as part of the training experience.

There are no pre-requisites for this course, nor is any advanced preparation required.

This course will be of interest to anyone involved in the planning, buying and selling of bunker fuels, physical and paper traders, brokers and ship operators – or participants whose organisations offer services to this industry.

Bunker Fuel Supply

  • The nature of crude oil
  • Refining – capacity and fuel production                    
  • Fuel manufacture                                
  • Refinery upgrading                            
  • Future refinery operations                            

Bunker Fuel Demand

  • Sectorial fuel use                                
  • Regional fuel use                                
  • Future trends                                
  • Demand shifts                                
  • Demand and supply balances                                

Pricing

  • Fuel and the refinery economics
  • Specifications                                
  • Characteristics affecting price                
  • Pricing methodology                        
  • Price variations                        
  • Fuel cracks                            

Price Drivers

  • Fuel oil trading including blending and an overview of hedging, storage, arbitrage and spreads
  • The market participants                            
  • Physical trading                        
  • Derivative trading                        

Structural Changes

  • Bunker specification changes                            
  • Emission trading – overview                        
  • Future pricing – overview                            
  • Buyers strategy                                

Regulations and Standards

  • Impact of changes in specifications from 1 January, 2015
  • Alternatives – LNG bunkering, scrubbers
  • ISO 8271

Price Risk Management

  • Price risk management techniques                
  • Developing a bunker purchasing strategy what are the impacts for the suppliers                     

Metering and Claims Procedures

  • How does more accurate metering lead to better business        
  • When to mediate - when to arrest how to streamline claims procedures    

Bunkering Strategies for Ship Owners

Exercises and Cases Studies

  • Where and how much to bunker – a ‘real time’ exercise
  • Blending and Testing for Quality

Faculty

Mr Charles Lawrie is a founding partner of Richardson Lawrie Associates, an independent firm of international maritime economists and business consultants established in 1987. He is responsible for the firm's consulting and retainer services in the crude oil, petroleum products and gas transportation sectors. He has spent 30 years in the oil and shipping sectors, more than 20 of which have been as project manager or senior consultant on shipping, economics, investment appraisals, feasibility studies, transportation strategies and business studies within Europe, the Americas and the Far East. He is a specialist in the development of: investment appraisals, business plans, strategy reviews; commercial/contractual advice, project implementation; evaluation of the transportation economics of varying routes, ports and cargo handling techniques; commodity trade flow analyses and forecasts; modelling and forecasts of short, medium and long term shipping traffic, shipping demand and shipping supply; and modelling and forecasts of shipping charter rates and vessel costs.

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