In world oil deals involving the crude oil and petroleum products trading, especially within the so-called international “secondary” market, probably the single most fundamental and most thorny common problem which legitimate buyers frequently confront today, is the difficulty of the genuineness and authenticity of the supplier of product and the sales offer he presents. The central source of that problem can be summed up in one word – namely, most persons or entities who claim via the Internet to be oil or petroleum products suppliers or “sellers,” or to be suppliers of other similar commodities, either provide NO proofs or evidence in any respect of that, or provide proofs or evidence that are sometimes absolutely meaningless because they’re unverified and unverifiable. Put very simply, for the serious or credible Internet buyer involved on the planet oil deals seeking to search out genuine suppliers, there are generally just NO duly VERIFIABLE authentic oil and petroleum products suppliers or trade offers in the so-called “secondary” market.
For the serious oil buyer, the problem is particularly acute and compounded by the fact that nearly all “sellers” (or suppliers), or their brokers or intermediaries, that one meets on the web, are essentially unknown, unestablished dealers who lack any name, reputation or identity, or any known location on the planet, and lack any record or history of past performance in doing the business. In consequence, the serious buyer is usually being asked — and really being realistically expected — to, in effect, merely take “the word” of some dubious, anonymous, unidentified and apparently unidentifiable, phantom “seller” or “supplier” for it, with no credible supporting evidence provided, and no verification or authentication whatsoever of the Internet seller’s offer or claims. He’s being asked — and really being expected — to risk, or, rather, to gamble away, his hard-earned mini-fortune of some $200 million merely on such a “word.”! This, it should be added, is being expected of the buyer in a business environment and climate that’s patently awash in fraud and a network of notorious scammers worldwide!
The basic CREDO OF THE BUSINESS
Yet, probably probably the most sacred, inviolable credo of any respected experts or trading practitioners ‘in the know,’ is that no responsible buyer (or seller) may seriously entertain or consider a trade offer UNLESS he has first examined and verified it to be genuine, and first confirmed that the party selling or supplying it is real. In sum, in relation to the business of world oil deals, finding authentic petroleum products suppliers that may provide some credible tangible proofs or evidence of being one, and which are literally verifiable, is the central, Number #1 need and requirement of any prudent and credible buyer.
As Davide Papa, a respected expert on the correct methodology and procedures of modern trading and the co-author with Lona Elliot of “International Trade & Successful Intermediary,” put it: “The golden rule of trading is this: never offer goods to anyone unless you [as a trader or an intermediary] have verified personally that the products are genuine. Never!” Elaborating, Papa adds that “you aren’t allowed to trade on goods offered by another intermediary in undisclosed form – this means if you happen to secure a supplier, or an intermediary gives you a suggestion, You must know who the supplier is, or there is not [a] deal… [That is primarily so, because it is just] once you have the details of the supplier, [that] you’ll be able to then begin to check the [information concerning the supplier],” drawing in your training and knowledge to do the essential due diligence required and to interpret the data gathered to find out whether you are coping with an AUTHENTIC supplier in possession of goods, or just another fake or confused intermediary masquerading as a seller or supplier of goods, or as a seller of another fake or confused intermediary seller.
FIND The vendor FIRST, THEN THE BUYER
In deed, knowledgeable experts and successful trading practitioners who have made a huge success of trading in oil and other commodities, go slightly bit farther. Namely, they advice that not only must you never seriously entertain or consider a petroleum trade deal or offer UNLESS you have first adequately verified it to be genuine, and first confirmed the tip-seller to be real, but that as a competent businessman and trader, you should make that your first priority and get that accomplished FIRST, before you could seek to secure a buyer. That’s, the doctrine is that for a good and informed trader (or intermediary), in case you are ever to be successful in the business, you must seek an authentic supplier, FIRST, and secure one; and ONLY then, after you’ve first secured such a supplier, do you have to then turn to search for a credible buyer next — the correct and fruitful order it should always go. That you simply NEVER should, in brief, secure a buyer first, and then search for a supplier.
Why should it follow such chronological order? Because, based on experts and successful traders, in world oil deals and the refined petroleum products industry, the business is often the “seller’s market” where it is often generally harder to search out the authentic petroleum products suppliers that even have the product to sell, than to search out buyers needing to buy them — a phenomenon that is even far more true and more acute in respect to finding sellers for products like the Nigerian BLCO, which is the brand of crude viewed within the industry as the “gold standard” having essentially the most coveted and highest quality specifications of crude and is always in great demand.
One expert, for example, with vast practical experience in this, Davide Papa, who has expended several decades of efforts trying to find even one authentic BLCO supplier but without success, pointedly makes the point that first finding oil Suppliers and having an assured verified supply in hand, and then seeking end buyers, is “how it works [and should work] for very good reason – I’ve never seen ONE real Bonny offer in 25 year – hundreds/thousands of fakes.” Papa adds that, in any case, “This must be the case because real suppliers are simply very hard to secure for anything – so many ill-informed sellers are also offering fake products – thinking that ‘If they can find a real end buyer, they’ll get supply’ – nonsense.”
IN OIL TRADING, THE CRITICALITY OF FINDING SUPPLIERS That are ALREADY VERIFIED & ARE VERIFIABLE
In sum, as a practical matter, finding real suppliers of any product – meaning one that is duly verified and verifiable – is mostly more problematic than finding real buyers for it in most industries, and in respect to the oil and petroleum products industry, particularly, that problem is even way more compounded, more acute and primary, for various reasons.
The perfect QUALITIES OF A true OIL SUPPLIER
What sorts of characteristics or qualities will qualify or measure up as legitimate and acceptable VERIFIED OR VERIFIABLE evidences or proofs that a dealer(s) is/are most apparently authentic petroleum products suppliers? The following are some of the key qualities and ideal indications of a verified and/or verifiable authentic oil supplier or seller:
=Supplier provides details of the supplier company as a real trading entity
=Supplier provides supplier company’s financial standing and performance information, and past track records
=Supplier’s financial info is confirmed and confirmable from a reputable international institution or capital equities and credit rating agency (e.g., the standard and Poors).
=Supplier is well-established, well-known, reputable dealer that ranks among some of the world’s biggest players within the commodities field, probably having offices all around the globe and having turn over volumes within the billions of dollars in annual trading in products like BLCO, SLCO, ARAMCO, REBCO, gasoline, Mazut, Bitumen, LNG, AGO, etc.
=Supplier will not be just a few unknown, unrecognizable, obscure, self-proclaimed, no-identity Internet “seller” or “supplier.”
=Supplier’s procedures is a “mutually safe” type of procedures – meaning one that’s structured and designed so that it actually protects BOTH the primary interests of the vendor to be paid for product, and of the buyer to get the product paid for and not to get scammed out of his money.
=Supplier’s procedures are quite workable, buyer-friendly and buyer-favorable, not less than for any LEGITIMATE dealer. (For instance, acceptance of, say, a Documentary Letter of Credit type of payment instrument by the Supplier, which means, in essence, ‘You the seller, you don’t get paid a dime by the buyer UNLESS you could have first delivered the product.’).
=ON The prices? Having a price structure that seems comparatively very competitive in terms of the prevailing official world prices, and are real and realistic relative to the world market, and not simply one that provides some fantasy-based prices that are totally unreal and unrealistic and seem like something that can only “work” within the fantasy world of a scammer and fraudster who really has no product to sell. (Such prices are possible and provided usually from suppliers who handle astronomical quantities of the product annually and valued in the several billions of dollars, as these would be the type who could be able to offer such best prices merely because of their market clout and volume).
=Supplier that offers verifiable Bills of Lading (verifiable by a good third-party international trade agency), as this document would constitute a credible proof and confirmation that the selling company has regularly sold product for the past many months or years
=Supplier requires or demands NO use of joker broker procedures like LOI, ICPO, FCO, BCL, etc., as this might be a very good indication that the offer is apparently NOT from some clueless broker or intermediary, but is directly from the end seller or supplier.
=Supplier doesn’t demand a transferable Letter of Credit (Use of this device has been characterized by one expert to be the chief source for “perpetration of 99% of Internet frauds.”)
=Supplier requires no so-called “pre-advice” Letter of Credit as a precondition for obtaining the POP (This has been noted to be the principal tool that many unscrupulous players use to do their scamming job today, as they’ll often head right to their bank to discount such instrument, then disappear leaving the buyer with no product or his money!).
=Supplier doesn’t require or demand payment of some upfront fees or charges of any kind or size by buyer (“Registration” fees, “security” fees, “clearance” fees, “government” fees, etc., are the basic ruse that scammers often use especially in the Russian and other oil markets, to scam gullible buyers!)
=Seller would allow for the buyer to undertake factory or refinery inspection visit and tour to personally do product inspection before the parties may sign the contract.
=Seller is willing, and also able, to post a 2% Performance Bond (ought to be a real UPFRONT bond) to buyer to assure its financial commitment and investment to perform the contract – and provides verifiable proof, even BEFORE the contract is signed, of its financial capability to post the PB.
HOW DO You find SUCH SUPPLIERS?
To be sure, true, in today’s world oil deals, which is largely an Internet-dominated world that’s, for essentially the most part, prevalently awash in fake dealers and scammers, finding authentic petroleum products suppliers and verified oil sellers of such caliber which can be well-verified and verifiable, isn’t commonplace. Nor is it a straightforward task to realize. It is, however, not at all impracticable, nor are such suppliers non-existent. Far, far from it! Quite to the contrary, such suppliers abound. It is only that you just just have to search around for such suppliers more diligently and skillfully and in the proper places.
FOR A FOLLOW UP
YOU Need to FOLLOW UP ON HOW To find AUTHENTIC PETROLEUM PRODUCTS SUPPLIERS AND OIL SELLERS Which are ALREADY VERIFIED, CONFIRMED AND VERIFIABLE? Please see the link provided within the author’s Resource Box below.