Navigating Petroleum Derivatives Trading: Insights from Redmond Global Exports
The petroleum derivatives trading industry is both lucrative and complex, filled with legitimate opportunities and countless scams. At Redmond Global Exports, we specialize in sourcing, procurement, and trading of key commodities like Jet Fuel, Diesel EN590, Mazut, LPG, LNG, and more. With years of experience, we’ve learned the hard way how to navigate this intricate market while avoiding fraudsters and pitfalls.
Why Can’t Buyers Just Deal with Refineries?
It may seem logical for buyers to purchase directly from refineries, but most refineries—especially in the CIS—operate through intermediaries. Even refineries in the Middle East, Asia, Africa, and the Americas use agents to manage transactions. Due to overwhelming demand and fraudulent inquiries, refineries ignore most unknown buyers, making reliable intermediaries essential.
Common Scams and How to Avoid Them
Fraudsters create fake refinery websites, promising bulk fuel sales at unrealistic prices. Their primary goal? Extract upfront payments under various pretexts—storage fees, terminal access, or legal documentation. Another common scam involves collecting buyers’ personal and financial documents, which are then sold on dark web markets.
Red Flags to Watch Out For:
✔️ Upfront payments for anything other than the product itself
✔️ Too-good-to-be-true prices that don’t align with market rates
✔️ Unverified sellers with poor communication or unverifiable track records
✔️ Requests for sensitive documents that aren’t necessary early in the process
The Legitimate Trading Process
A real petroleum derivatives transaction follows a structured procedure:
- Buyer issues LOI (Letter of Intent) detailing requirements.
- Seller verifies buyer’s credentials and issues a sales offer.
- Buyer submits an ICPO (Irrevocable Corporate Purchase Order) with financials and storage details.
- Seller provides Proof of Product (POP), such as an SGS inspection or dip test authorization.
- Fuel is delivered, tested, and verified. The buyer makes payment, and intermediaries receive commissions.
Why Partner with Redmond Global Exports?
With a deep understanding of the industry, we assist buyers and sellers in due diligence, document verification, escrow management, and negotiation—ensuring secure and successful transactions. In this high-risk business, experience and connections make all the difference.
At Redmond Global Exports, we are your trusted partner, helping you trade petroleum derivatives safely and profitably. If you’re ready to navigate this industry with confidence, reach out to us today! email: exports@redmond.co.in