How to Find Verifiable Crude Oil Sellers

Crude oil is becoming hard to find and getting a genuine supplier is even much more harder. With the crude oil business being one of the world's largest and easily one of the most profitable, there are a whole host of companies and agents in the fray posing as sellers of this black substance. That said, there are various other factors at play, which determine the extent to which companies or agents can go to be in the supply business.

Firstly, there are several kinds of crude oil ranging from: Brent crude, Bonny Light, Forcados Crude, Saudi Light Crude, etc. The specification of these products are relatively different and their demand and prices also varies. Amongst these crude oil, the one in higher demand is the bonny light crude oil which is said to have a higher API gravity (low specific gravity) and it is mostly produced in the Niger Delta basin of Nigeria. The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent. However, a few countries have been said to have this crude oil in abundance, these countries are Nigeria, Russia, Saudi Arabia, Kuwait, Iran, USA, etc. Some of these countries have a very large demand in their own country so buying from them might pose some difficulty. Nigeria is still known to be the most flexible country with regards to buying crude oil if you are fortunate to find into genuine sellers.

Finding a verifiable seller in the Nigerian market is very simple if you follow the steps. Firstly, you must decide on whom to buy from since there are several sellers in the Nigerian market. If you choose to buy from the government that means you'll be dealing with the Nigerian National Petroleum Corporation (NNPC). Buying from this corporation is safe but you'll be faced with a whole lot of challenges like meeting up with their policies which are extremely strict. You could also choose to buy from private sellers like Shell, AP and Chevron, but buying from independent sellers that already have bulk allocation from the Nigerian National Petroleum Corporation is usually the best.

Having said, the big question now is how to get this verifiable sellers?. Although, in the parallel market of Oil industry it is the buyer who always should come clean first and disclose its profile, want and ability and should also be willing to provide documents and most importantly exercise cautious. There is a lot of fake sellers out there, and quite simply - the watchword is due-diligence. Without wishing to appear disaparaging, anyone who enters such markets without an in-depth knowledge of the dynamics and mechanics of the market itself, with no experience, is asking for trouble. Due diligence is the only sure way of making sure - how well do you really know this counterparty? In a Due Diligence you need to know if the "seller" is a duly registered company expecially in some countries but dealing locally, or having someone to correspond with the sellers in the country you are buying the product from is very important.

Furthermore, you should be careful about sellers claiming they are able to supply extremely large quantity of crude oil as most of the independent oil sellers have a limited amount they can supply per month. Another note is that there is no fix pricing of crude oil, I have seen many so called sellers advertising selling crude oil at fix pricing or claiming they can supply at a certain too-good-to be true prices. You should be wary of such people and no genuine seller requires you to commit any amount of money prior to completion of the deal or will require you to pay any upfront whatsoever!

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