Commodities, Derivatives and Structured Products

Commodities - Part 3 (2023)


This eCourse consists of two modules. Module 1 examines crude oil in detail, from its key features and characteristics to how it is traded it in the market. Crude oil remains central to the functioning of modern economies. It continues to hold the largest share of the world’s energy mix and powers most forms of transport through its refined products. It is also the principal input for many chemical processes and is used in the manufacture of numerous everyday products.

Module 2 describes the process of oil refining and how it used to make these products, as well as the different features and characteristics of the different product groups.


On completion of this course, you will be able to:
- Recognise the key characteristics of crude oil and why these are important in terms of crude oil as a traded commodity
- Outline the exploration and production activities that take place in the upstream segment of the oil industry
- Identify the key locations of supply and demand for crude oil, and the role of OPEC in influencing supply dynamics
- Recognise the impact of the growth in the supply of US tight (shale) oil in recent times
- List the leading price benchmarks in crude oil markets
- Identify the different types of crude oil derivatives contracts traded in the market
- Recognise the link between oil refining and petroleum products and the key processing units associated with refineries
- List the main refined products and their key specifications from each of the fractions (light ends, middle distillates, and heavy fractions) associated with the refining process
- Define the crack spread and its importance to refiners and other hedgers as well as speculative traders


Module 1: Commodities - Crude Oil
Topic 1: Crude Oil Basics
Topic 2: Exploration & Production
Topic 3: Supply & Demand
Topic 4: Tight Oil (Shale Oil)
Topic 5: Crude Oil Benchmarks
Topic 6: Derivatives Trading

Module 2: Commodities - Oil Products
Topic 1: Oil Refining
Topic 2: Light Ends
Topic 3: Middle Distillates
Topic 4: Heavy Fractions
Topic 5: Crack Spreads


Relevant Subject
Type 2 - Dealing in futures contracts
Type 5 - Advising on futures contracts
SFC:1.50, PWMA:1.50
All Member: HK$610
Staff of Corporate Member: HK$610
Non-Member: HK$890