Refinery margins optimization
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Situation
A U.S. refinery processes crude oil into distillates and uses internal optimization to decide on the level of output for each refined product.
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Complication When the forward market value of the refinery margins looks attractive, they decide to lock in a portion of their forward crack spread, but are not sure if the volumes locked in are optimal, given market uncertainty.
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Solution We developed a simulation based framework where they can input the forward curves for the crack-spread, option premiums related to certain traded products, and their level of risk appetite (CVaR). The tool simulates over all possible oil price scenarios and suggests optimal volume levels to be hedged in futures and option markets.
What clients said aboutour projects
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Bron Sharman Senior Oil Trader “Unlike many advisers I’ve worked with, Trading Integral Solutions don’t have to pretend to be interested in their clients: they focus on what really matters and strive to add value in an optimal way.” Bron Sharman, Senior Oil Trader at SOCAR Trading -
Olga Kutuzova IFRS Group Manager "Trading Integral Solutions applied high quality standards when they delivered their project to us. We benefited greatly from our interaction with their highly skilled team of experts!" Olga Kutuzova, IFRS Group Manager at Novatek Gas & Power -
Jaroslaw Wajer Partner "I have cooperated with Trading Integral Solutions several times. They supported us during the design and implementation of trading departments and company strategies for our power utilities clients. I appreciate their trading expertise and profound knowledge of risk management. I would truly recommend cooperation with Trading Integral Solutions." Jaroslaw Wajer, Partner Performance Improvement at Ernst & Young