Most oil enquiries stall not on volume or price but on whether the counterparty can actually deliver the cargo. The checks below are long-established industry practice.
Verify the right to sell
National oil companies and majors sell to approved counterparties under term contracts. Offers routed through several layers of intermediaries frequently never reach a real cargo. The first step is written confirmation of where the cargo comes from — refinery or terminal — and the seller’s relationship to it.
Beware documents demanded up front
A rigid sequence of letters of intent, purchase orders and proof-of-funds demanded before anything else is a pattern often seen where documents circulate without a cargo behind them. Genuine trades usually begin with counterparty verification and contract negotiation.
Advance fees
Requests to wire money before contract — for tank dips, securing cargo or issuing paperwork — warrant caution. Legitimate inspection costs are allocated in the contract and paid directly to the inspection company.
Sanctions & compliance screening
Screening the counterparty, the vessel and the final destination against sanctions is mandatory, not optional. Gaps in vessel tracking signals, ship-to-ship transfer history and inconsistent origin documents are the standard warning signs.
This reference explains published industry norms and standards. It does not replace the terms of an individual contract, nor legal or tax advice — and it carries no prices; the price board does that.