New Publications from Consilience

New Publications from Consilience

April 1, 2014

Consilience has just published its companion volumes “Trading Crude Oil: The Consilience Guide” and “Trading Refined Oil Products: The Consilience Guide”

These two volumes give a holistic view of how to trade whether physically or electronically. If you are looking for a step-by-step guide to a future career as a trader or, if you are a business executive or industry professional seeking an overview of how the market works, these books will provide what you need.

Consilience currently has a 20% introductory discount on the purchase of both books. They can also be purchased individually.

To see the full range of information contained within the books please read below to see summaries of content by Chapter:

Buy them now


Trading Crude Oil:

  1. Introduction and Context Setting. An introduction to the historic patterns of supply, demand and trade in the oil industry with an explanation of the conventional wisdom about how the world will look going forward and what might happen to upset that picture. A preliminary look at how to analyse prices from the traders’ perspective.
  2. Logistics of trading crude oil. This chapter gives the reader a detailed understanding of the physical logistics of moving oil in pipeline and in tankers. It explains the contracts, shipping operations, credit security and documentation of the physical market.
  3. The Absolute Price of Oil (A). An introduction to the absolute price of oil (A), the first of the three components of the Consilience oil price analytical tool. The benchmark grades of oil, the forward and futures markets.
  4. The Time Differential (T). The second component of the Consilience oil price analytical tool. The price of oil varies with its delivery date. This chapter explains the role of the shipping operator in getting hold of oil on the best dates for the trader and in the use of the much misunderstood “CFD” market in establishing the correct value of a physical cargo and in finessing hedges.
  5. The Grade Differential (G). The value of different grades of crude oil to a refiner. Some basic chemistry and an introduction to the Gross Product Worth of crude oil and the other factors that influence a refiner’s decision to buy one grade of crude oil rather than another.
  6. Hedging the crude oil price. This chapter consolidates the knowledge gained in the first chapters with a detailed look at strategic hedging and oil field financing using the forward oil curve. It explains the role of derivative swaps and options and how to avoid your company going a hedge too far.


Trading Refined Products:

  1. An overview of who gets involved in products trading and why. It looks at the roles of producers, refiners and traders and all the other participants, such as storage companies, blenders, tanker owners, pipeline operators, and rail and road truck suppliers, that get involved in the supply chain from the wellhead to the point of distribution to end-users.
  2. Delves into the refining processes involved in separation, treatment and upgrading of oil products. It provides the basic carbon chemistry needed to fully appreciate the refining industry and the changes wrought by the various processes such as vacuum distillation, hydrotreating, reforming or cracking.
  3. Takes a long, hard look at each of the key burnt products, categorised by petroleum gases, light distillates, middle distillates and fuel oil, and the speciality products such as lubes, bitumen and coke. It considers the use to which each is put, their key quality specifications, and the way these products are measured, sampled and tested to meet those specifications.
  4. Analyses oil product transport and storage logistics and delivery terms. It looks at the standardisation of physical product contract terms and custom and practice for arranging documentation, credit and payment in the oil industry.
  5. Uses the Consilience “A+/-T+/-G” technique of analysing commodity prices. “A” represents the absolute price of a benchmark grade, “T” is the time differential between the delivery date of the benchmark grade and the delivery date of the oil product in question, and “G” is the difference between the quality of the benchmark grade and the quality of the oil being delivered.
  6. Gets to grips with risk management and hedging. It explains forward contracts, futures, swaps and options in easy steps with plenty of worked examples to lead the reader to a profound understanding of what can and cannot be achieved with the existing market instruments.