![]() Regardless of the growth of alternative energy sources, crude oil is still the engine that powers the world. In country’s like the U.S. that consumes more than it produces, that means that those wishing to procure supplies must identify viable sellers of this vital commodity. In a world separated by language and culture, that is not always a simple process. For that reason, physical commodities brokers are often utilized to match buyers with sellers and expedite commodities transfers. Sellers of crude oil can be found in oil producing countries including Russia, Nigeria, Saudi Arabia, Kuwait, Iran, Iraq, and Angola, to name just a few. To buy this commodity, however, you need to find a seller. The experienced broker in crude oil can assist a qualified buyer in negotiating and consummating transactions with three distinct types of sellers: state sellers, private sellers, and independent sellers. State sellers are essentially government companies. This classification of sellers is relatively easily identified, and risks associated with transacting business with these companies are low. The downside for the prospective buyer is the price. Generally, state sellers garner market price for their crude oil. Additionally, state sellers demand higher levels of buyer verification both in terms of capital and historical ability to close large crude oil transactions. If buyers can meet these requirements, the best approach to state sellers is via registered crude oil agents or facilitators. Only slightly less restrictive, private sellers represent an alternative source of supply. BP, Shell, Chevron, Exxon Mobil, and other major explorers, extractors, and processors of crude oil products are examples of private sellers. As in the case of state sellers, guaranteed supplies and low risk are offset for the buyer by higher prices and more restrictive scrutiny of prospective buyers. These companies can be contacted via headquarters or branch offices in many of the developed nations. The third, least restrictive, and perhaps best source of crude oil for those purchasers just entering the crude oil market is the independent seller. Independent sellers secure their supplies from private sellers, state sellers, or some type of oil allocations. Ease of transaction with this classification of seller is dramatically enhanced and an extensive transaction history and large levels of capital reserves are usually unnecessary. Buyers usually only need to provide proof of funds required to complete the transaction. The downside risk to the purchaser from an independent seller is the vastly higher potential for fraud in these transactions. In these types of transactions, the seasoned crude oil broker can help the purchaser navigate the transaction successfully. This is your new blog post. Click here and start typing, or drag in elements from the top bar.
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8/18/2011 04:57:42 pm
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10/21/2011 03:42:14 pm
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