Fundamentals of Bunker Supply, Demand, Pricing & Operations (VIRTUAL CLASSROOM) - BUN1 

CPE Credits Awarded: 10
Categories: Oil Industry, Oil Supply and Trading, Refining, Shipping and Bunkering, Fuels, Virtual Classroom Courses

 SESSION SCHEDULE

16-18 May 2022
 New York City Timing  London Timing
Session 1: 16 May 2022  
 9:30am - 1:00pm EDT  14:30 - 18:00 GMT
Session 2: 17 May 2022
 9:30am - 1:00pm EDT  14:30 - 18:00 GMT
Session 3: 18 May 2022 
 9:30am - 1:00pm EDT

 14:30 - 18:00 GMT

COURSE SUMMARY

The bunker industry has become increasingly challenging for all players. Residual fuel supplies are in decline as more and more of the oil barrel is cracked to produce lighter fuels. In recent times, prices have been affected by cutbacks in OPEC heavy crude oil output and bunker fuel components being used as refinery feedstocks. Price differentials between high sulphur fuel oil (HSFO) and 0.5% sulphur very low sulphur fuel (VLSFO), while currently on the rise, fell to particularly low levels in 2020, dramatically reducing the incentive to fit scrubbers to vessel. The price of natural gas/LNG relative to fuel/diesel oil and the choice of fuel for power generation and heating can also impact on the price of bunkers.

Owners are facing increasingly stringent regulations regarding carbon and other emissions. This has already led to requirements for emissions reporting under IMO and EU legislation. In the meantime, we are seeing the introduction of alternative fuels such as LNG and methanol with extensive research being undertaken into long term alternatives such as ammonia, hydrogen and a range of ‘green’ or ‘bio’ fuels.

The quality of bunkers remains an issue in some parts of the world as does the question of quantity measurement. Bunkering strategies are an additional consideration for ship operators while pricing is an issue for both buyers and sellers.

This is an intensive course, held over three days and a total of nine contact hours, covering bunker fuel demand and supply, pricing, sale and purchase strategies, fuel specifications, legislation, blending, testing and measuring for quality and quantity, contracts and claims. The course is presented by a team of experienced industry experts from Richardson Lawrie Associates Ltd.

WHO SHOULD ATTEND?

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.

COURSE CONTENTS

Bunker Fuel Demand and Supply

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


Pricing

  • Specifications                                
  • Characteristics affecting price                
  • Pricing methodology                        
  • Price variations


Price Drivers

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

Blending Operations
                        
Regulations and Standards

  • Regulations governing emissions;
  • Scrubbers ? open/closed loop systems, economics;
  • ISO 8217 and bunker fuel specifications;
  • Fuel quality ? compatibility, cat fines, miscibility;
  • Alternative fuels.

Risk Management

  • Strategies both from a pricing perspective? where to buy, what sort of quantities, from whom ? and an operational perspective;
  • Management of price, operational, reputation and payment Risk.


Metering and Claims Procedures

  • Test Methods
  • How does more accurate metering lead to better business        
  • When to mediate - when to arrest; how to streamline claims procedures
  • Loss Prevention
  • Blending and Testing for Quality and Quantity (Custody Transfer)

Sample Testing Techniques
   
Bunkering Strategies for Ship Operators and Suppliers

  • Stemming cargoes for single voyages;
  • What quantity? where? impact on cargo loaded? differences arising out of trading in tropical or winter zones.

UK: (+44) 1865 250521   |   USA: (+1) 713 343 1699   |   Singapore: (+65) 6809 1170

 

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Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.