Monday, 23 September 2013

Crude Oil Trading Business: A Helping Guide for Beginners




Certainly, crude oil trading and dealing in its derived products has always been a money-spinning trade. This is because it is the market of sellers, which means it is conquered as well as dictated by the seller's entrance instead of the buyers. Thus, it would not be wrong to say that selling the product is not a tricky all the time when it comes to dealing in crude oil. At the identical instant getting share of the products still remains most complicated fraction with elevated entrance of hurdles. 


Nearly the entire oil bought or sold in open market is from OPEC which is known as Organization of Oil Producing & Exporting Countries. In particular the Nigeria National Petroleum Corporation, usually recognized as NNPC, trades great part of its hoards in the open market. If you are interested to deal in such products, you might be thinking how you can get share from NNPC. Well, you will require having the below mentioned for obtaining a chance of getting share from this government organization: 


Ø  Funds: Without any doubt it is must to have. You will require having finances more than 100 Million dollars and presenting the evidence of such funds to National Petroleum Corporation.

Ø  Performance Bond: Not merely the funds, but you need to provide a performance bond of 1 percent (1 million dollars) as a minimum of the above sum.

Besides this you are also likely to be a local or a global oil processing plant. In case, if you do not have any of these, then you must be a well known dealer in the Oil industry as a minimum.

If you are not able to be eligible to meet the above talked about measures, there is one more approach to obtain crude oil trading. You can now opt for acquiring from the individuals who acquire the share from NNPC. However, you will need to shell out a premium above the sale price of NNPC. 


By getting hold of ownership of the shipment For Oil Trading you can get two options. Here, you can come to a decision to stock up the goods at a tank terminal and later on vend it as a split mass cargo if a price climb is predictable. In order to keep your risk to least, you can also opt for selling the whole cargo in one go. However your earnings limits in such case will be compact.
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