Risk and Market analysis of trading profit and loss / exposure that is used as a key management control for all international / domestic oil trading strategies.
Production / management of all daily reports to support this function including delta changes, market structure, deal economics, price exposure, hedge requirements and ad hoc management reporting
Various platforms provide the core structure of our data capture for reporting purposes. Management of the data integrity in our system is essential as it provides all the base information in our PnL and exposure analysis.
A strong understanding of physical deal economics and the key components are essential (Freight, Demurrage, Finance, hedging, pricing) as one core responsibility is to correctly set up inception profit and loss (PnL ).
Once inception PnL has been established and agreed with the commercial team. From this point onwards the daily changes in PnL and exposure due to underlying market conditions, economics, basis risk and mark to market values are then assessed and a daily commentary of variances produced.
Production of the forward curve to mark to market positions is also a key element to the reporting, which implies candidates must have a strong understanding of market fundamentals, trends and structures in the markets they monitor.
Other key duties include ensuring all basis risk and volumetric positions are correct and appropriate hedge and pricing actions are taken to mitigate the company’s risk, and then ensuring all executions are correctly allocated within trading system.
Reconciliation of all estimates used in PnL to the final invoice value ensures our trading PnL is deemed to be finalized and correctly in line with our statutory requirements.
This information is then used to drive the trade ledgers in the statutory accounts. The role also carries a large emphasis on the continual review and upgrade to processes and system to increase the accuracy and timeliness of our reporting.
Although a wide variety of skills are required to be able to complete the full role to the highest level, various elements of the core activities can be molded into a role that will ensure that a candidate will be exposed to every facet of oil trading and gain the required knowledge to successfully advance to higher levels of responsibility.
The role actively encourages candidates to gain experience of the various business functions and departments and based on this knowledge intuitively assess circumstantial changes and the effect this will have to the trading PnL and therefore develop a deep knowledge of the industry.
Knowledge Skills and Abilities