Introduction to Commodity Markets

Grow your understanding of quantitative analysis for commodity markets

Get Your Brochure

Course Dates

STARTS ON

August 18, 2022

Course Duration

DURATION

7 weeks, online
4–6 hours per week

Course Fee

Overview

Global energy as a service market is growing, but energy derivatives are unique even among other commodities. For example, energy prices are significantly more volatile than benchmarks in other markets, equities, rates, and currencies. Furthermore, supply and demand can fluctuate rapidly on a daily or even an hourly basis for a variety of reasons.

Due to these and other complex characteristics, energy markets and derivatives require special attention and special risk management tools. The Introduction to Commodity Markets program is designed to introduce financial professionals to the intricacies of energy markets, starting at the macro level with main markets and structures and progressing to topics including basic commodity structures and instruments, statistical analysis, commodity forwards, swaptions, and spread options.

As a participant, you will gain practical experience in building pricing and hedging models specifically for energy derivatives and complete a final project using data analysis to solve a real commodity market problem.

Prerequisites: Prior knowledge of Python programming will make it easier to work with the data sets in this program, however it is not a requirement, and the tasks can also be completed with Microsoft Excel. Participants will also need to have an understanding of quantitative analysis and stochastic calculus.

$86.9B

Global energy as a service market is on the rise and expected to hit $86.9 billion by 2024, growing from an estimated $52 billion in 2019 at a CAGR of 10.8%.

SOURCE: Market Reports

59%

Energy prices tracked by the Goldman Sachs Commodity Index (GSCI), rose by 59% between the first and closing trading days of 2021, higher than all other commodities.

SOURCE: Today in Energy

"This course will be useful for someone who intends to work in the commodities field and will be working on pricing and risk management of energy derivatives."
—Roza Galeeva, Adjunct Professor, NYU Tandon Finance and Risk Engineering

Who Is This Program For?

This program was designed to provide an introduction to commodities markets—specifically to energy markets and their complexities—for finance professionals who may or may not have previously worked with energy derivatives or commodities but have a keen interest in them.

It is ideal for early- to mid-level finance or investment professionals looking to:

  • Gain a deeper understanding of the quantitative methods used in commodity markets as well as correlation and volatility in energy markets
  • Get an overview of important fundamental and econometric attributes of the core markets
  • Understand commonly traded instruments in energy markets and their basic evaluation

Professionals looking to build a deeper technical understanding of the commodity markets and how to conduct their own analyses may also find the program beneficial.

Program Highlights

Throughout this seven-week program, you will get an introduction to energy derivatives and what sets them apart from other commodities as well as the tools needed to price them and assess their volatility.

  • IDENTIFY the history and key concepts of commodities trading that make them unique in the finance world
  • INTERPRET and evaluate core commodities data
  • ANALYZE volatility and correlations in commodities
  • CALCULATE the impact of swaptions (options on certain swaps) and Greeks (mathematical equations that offer greater sensitivity) on derivatives
  • USE data analysis to solve a commodities market problem

Program Syllabus

Explore the world of commodities through the lens of energy markets. You’ll learn what sets them apart and the various economic factors and volatility involved in trading them.

Module 1:

Introduction to Commodity Markets

Review the history, key concepts, main commodity markets, and energy consumption metrics.

  • Identify key concepts of commodities trading
  • Match energy consumption metrics to the correct commodity
  • Calculate and convert basic energy units used for trading commodities
  • Analyze current pricing of commodities

Module 2:

Basic Commodity Structures and Instruments

Examine basic commodity structures and instruments in order to classify energy derivative products.

  • Classify energy derivative products
  • Identify the unique characteristics of the standard derivative products in energy markets
  • Pricing of the standard derivative products in energy markets

Module 3:

Statistical Analysis of Commodities Data

Explore the role of data in commodities modeling and review how to apply statistical tools.

  • Identify the importance of data analysis in commodities modeling
  • Review statistical tools applied in commodities modeling
  • Calculate statistical data of commodities

Module 4:

Dynamics of Commodity Forwards

Understand the volatility structure in commodity forwards and then calculate correlations for them.

  • Identify properties of correlations in commodity forwards
  • Calculate correlations for commodity forwards
  • Calibrate forms of the Samuelson model to predict a rise in futures price return volatility as the futures contract approaches its expiration date

Module 5:

Swaptions

Analyze swaptions that deal specifically with correlations in commodities.

  • Identify the volatility structure in commodities forwards
  • Calculate the properties of swaptions
  • Value a swaption using the Monte Carlo framework
  • Calculate swaptions and Greeks

Module 6:

Spread Options

Evaluate spread options that deal specifically with futures and calculate these options.

Module 1:

Introduction to Commodity Markets

Review the history, key concepts, main commodity markets, and energy consumption metrics.

  • Identify key concepts of commodities trading
  • Match energy consumption metrics to the correct commodity
  • Calculate and convert basic energy units used for trading commodities
  • Analyze current pricing of commodities

Module 4:

Dynamics of Commodity Forwards

Understand the volatility structure in commodity forwards and then calculate correlations for them.

  • Identify properties of correlations in commodity forwards
  • Calculate correlations for commodity forwards
  • Calibrate forms of the Samuelson model to predict a rise in futures price return volatility as the futures contract approaches its expiration date

Module 2:

Basic Commodity Structures and Instruments

Examine basic commodity structures and instruments in order to classify energy derivative products.

  • Classify energy derivative products
  • Identify the unique characteristics of the standard derivative products in energy markets
  • Pricing of the standard derivative products in energy markets

Module 5:

Swaptions

Analyze swaptions that deal specifically with correlations in commodities.

  • Identify the volatility structure in commodities forwards
  • Calculate the properties of swaptions
  • Value a swaption using the Monte Carlo framework
  • Calculate swaptions and Greeks

Module 3:

Statistical Analysis of Commodities Data

Explore the role of data in commodities modeling and review how to apply statistical tools.

  • Identify the importance of data analysis in commodities modeling
  • Review statistical tools applied in commodities modeling
  • Calculate statistical data of commodities

Module 6:

Spread Options

Evaluate spread options that deal specifically with futures and calculate these options.

NOTE: We are not financial advisors. Any information provided is not intended and should not be relied on for investment or financial advice. You should consult your own investment, tax, legal, and accounting advisors before engaging in any transaction.

Download Brochure

Practical Application (Project)
Use data analysis to solve a real commodity market problem in this final project.

Here’s a summary of what the final project entails:

  • CHOOSE from one of two areas of focus—swaptions or spread options
  • GATHER statistical data for a commodity and generate a report of your findings based on your selections
  • CONDUCT both a swaption and spread option analysis if you're interested in completing both (but only one is required to complete the program)
  • USE your programming skills (a prerequisite not covered in this program) to gather the data and conduct a quantitative analysis

More instructions and details will be provided throughout the program.

NOTE: We are not financial advisors. Any information provided is not intended and should not be relied on for investment or financial advice. You should consult your own investment, tax, legal, and accounting advisors before engaging in any transaction.

Program Faculty

Profile picture of course faculty & description, DR. ROZA GALEEVA

Dr. Roza Galeeva

Adjunct Professor, NYU Tandon, Finance and Risk Engineering

Dr. Roza Galeeva is an adjunct professor at New York University, Department of Finance and Risk Engineering. She has extensive experience with over 18 years in commodity derivatives—modeling, pricing, and risk management... More info

Certificate

Certificate

Upon successful completion of the program, participants will be awarded a verified digital certificate by NYU Tandon.

Download Brochure

FAQs

  • How do I know if this program is right for me?

    After reviewing the information on the program landing page, we recommend you submit the short form above to gain access to the program brochure, which includes more in-depth information. If you still have questions on whether this program is a good fit for you, please email learner.success@emeritus.org, and a dedicated program advisor will follow-up with you very shortly.


    Are there any prerequisites for this program?

    Some programs do have prerequisites, particularly the more technical ones. This information will be noted on the program landing page, as well as in the program brochure. If you are uncertain about program prerequisites and your capabilities, please email us at learner.success@emeritus.org for assistance.


    Note that, unless otherwise stated on the program web page, all programs are taught in English and proficiency in English is required.


    What is the typical class profile?

    More than 50 percent of our participants are from outside the United States. Class profiles vary from one cohort to the next, but, generally, our online certificates draw a highly diverse audience in terms of professional experience, industry, and geography — leading to a very rich peer learning and networking experience.


    What other dates will this program be offered in the future?

    Check back to this program web page or email us at learner.success@emeritus.org to inquire if future program dates or the timeline for future offerings have been confirmed yet.

  • How much time is required each week?

    Each program includes an estimated learner effort per week. This is referenced at the top of the program landing page under the Duration section, as well as in the program brochure, which you can obtain by submitting the short form at the top of this web page.



    How will my time be spent?

    We have designed this program to fit into your current working life as efficiently as possible. Time will be spent among a variety of activities including:



    • Engaging with recorded video lectures from faculty
    • Attending webinars and office hours, as per the specific program schedule
    • Reading or engaging with examples of core topics
    • Completing knowledge checks/quizzes and required activities
    • Engaging in moderated discussion groups with your peers
    • Completing your final project, if required

    The program is designed to be highly interactive while also allowing time for self-reflection and to demonstrate an understanding of the core topics through various active learning exercises. Please contact us at learner.success@emeritus.org if you need further clarification on program activities.



    What is it like to learn online with the learning collaborator, Emeritus?

    More than 250,000 professionals globally, across 80 countries, have chosen to advance their skills with Emeritus and its educational learning partners. In fact, 90 percent of the respondents of a recent survey across all our programs said that their learning outcomes were met or exceeded.

    A dedicated program support team is available 24/5 (Monday to Friday) to answer questions about the learning platform, technical issues, or anything else that may affect your learning experience.


    How do I interact with other program participants?

    Peer learning adds substantially to the overall learning experience and is an important part of the program. You can connect and communicate with other participants through our learning platform.

  • What are the requirements to earn the certificate?

    Each program includes an estimated learner effort per week, so you can gauge what will be required before you enroll. This is referenced at the top of the program landing page under the Duration section, as well as in the program brochure, which you can obtain by submitting the short form at the top of this web page. All programs are designed to fit into your working life.

    This program is scored as a pass or no-pass ; participants must complete the required activities to pass and obtain the certificate of completion. Some programs include a final project submission or other assignments to obtain passing status. This information will be noted in the program brochure. Please contact us at learner.success@emeritus.org if you need further clarification on any specific program requirements.


    What type of certificate will I receive?

    Upon successful completion of the program, you will receive a smart digital certificate. The smart digital certificate can be shared with friends, family, schools, or potential employers. You can use it on your cover letter, resume, and/or display it on your LinkedIn profile. The digital certificate will be sent approximately two weeks after the program, once grading is complete.


    Can I get the hard copy of the certificate?

    No, only verified digital certificates will be issued upon successful completion. This allows you to share your credentials on social platforms such as LinkedIn, Facebook, and Twitter.


    Do I receive alumni status after completing this program?

    No, there is no alumni status granted for this program. In some cases, there are credits that count toward a higher level of certification. This information will be clearly noted in the program brochure.


    How long will I have access to the learning materials?

    You will have access to the online learning platform and all the videos and program materials for 12 months following the program start date. Access to the learning platform is restricted to registered participants per the terms of agreement.

  • What equipment or technical requirements are there for this program?

    Participants will need the latest version of their preferred browser to access the learning platform. In addition, Microsoft Office and a PDF viewer are required to access documents, spreadsheets, presentations, PDF files, and transcripts.


    Do I need to be online to access the program content?

    Yes, the learning platform is accessed via the internet, and video content is not available for download. However, you can download files of video transcripts, assignment templates, readings, etc. For maximum flexibility, you can access program content from a desktop, laptop, tablet, or mobile device.

    Video lectures must be streamed via the internet, and any livestream webinars and office hours will require an internet connection. However, these sessions are always recorded, so you may view them later.

  • Can I still register if the registration deadline has passed?

    Yes, you can register up until seven days past the published start date of the program without missing any of the core program material or learnings.


    What is the program fee, and what forms of payment do you accept?

    The program fee is noted at the top of this program web page and usually referenced in the program brochure as well.

    • Flexible payment options are available (see details below as well as at the top of this program web page next to FEE).
    • Tuition assistance is available for participants who qualify. Please email learner.success@emeritus.org.

    What if I don’t have a credit card? Is there another method of payment accepted?

    Yes, you can do the bank remittance in USD via wire transfer or debit card. Please contact your program advisor, or email us at learner.success@emeritus.org for details.


    I was not able to use the discount code provided. Can you help?

    Yes! Please email us at learner.success@emeritus.org with the details of the program you are interested in, and we will assist you.


    How can I obtain an invoice for payment?

    Please email learner.success@emeritus.org with your invoicing requirements and the specific program you’re interested in enrolling in.


    Is there an option to make flexible payments for this program?

    Yes, the flexible payment option allows a participant to pay the program fee in installments. This option is made available on the payment page and should be selected before submitting the payment.


    Does the program fee include taxes? Are there any additional fees?

    Yes, the program fee is inclusive of any taxes, except for GST for Singapore residents.


    How can I obtain a W9 form?

    Please email us at learner.success@emeritus.org for assistance.

  • What is the policy on refunds and withdrawals?

    You may request a full refund within seven days of your payment or 14 days after the published start date of the program, whichever comes later. If your enrollment had previously been deferred, you will not be entitled to a refund. Partial (or pro-rated) refunds are not offered. All withdrawal and refund requests should be sent to admissions@emeritus.org.



    What is the policy on deferrals?

    After the published start date of the program, you have until the midpoint of the program to request to defer to a future cohort of the same program. A deferral request must be submitted along with a specified reason and explanation. Cohort changes may be made only once per enrollment and are subject to availability of other cohorts scheduled at our discretion. This will not be applicable for deferrals within the refund period, and the limit of one deferral per enrollment remains. All deferral requests should be sent to admissions@emeritus.org.

Apply Now

Early registrations are encouraged. Seats fill up quickly!

Flexible payment options available. Learn more.