F1IE 4200 - Energy Markets

The lectures on the oil markets are aimed to explore the current issues concerning the interaction between physical and financial layers of the oil market and to analyse the implications of financialization of oil markets on oil price behaviour. One objective is to describe the evolution of the international oil pricing system and to assess its main features. Another objective is to explain the basic mechanics of financial instruments and how these instruments can be used for hedging purposes and price discovery in the oil market. The module is designed to be accessible both to those with little prior knowledge of finance issues/risk management principles. Learning Outcomes:
The aims of the lectures are to:
• To enable students to analyse how the transition is shaping oil markets and oil players' behaviours and strategies;
• To enable students to analyse the major structural developments in global oil markets and to identify the main short-term and long-term factors shaping the industry and oil markets;
• To enable students to understand the price formation process in oil markets;
• To enable students to understand the basics of the main financial tools used for hedging and risk management in oil markets;
• To enable students to evaluate the role of OPEC and its interactions with the oil market.
• To enable students to understand the evolution of the international oil pricing system;
Topics:
 Oil Markets in Transition: Key Features and Issues
 Oil Price Differentials
 Structural Transformations in Oil Trade Flows
 Adjustment Mechanisms in Oil Markets
 Price Discovery, Hedging and Speculation in Energy Markets