We network with Providers and Mandates who are experts in their
field (Oil Products) with backgrounds in major oil companies'
portfolios, ship brokers and futures and financial houses.
The trading of oil from one party to the other can take place at
various points along the petroleum value chain, but oil sales
usually occur upstream near the point of production (the first
"liquid market"). Oil products like other commodities, are bought
and sold through a variety of contract types, including "spot"
transactions.
These arrangements serve either of two
purposes:
■
"To transfer the title and possession of the physical oil products
from the producer to the buyer *- a refiner or trader,
and
■
"To manage the financial risks involved in trading a commodity that
is subject to daily price fluctuations
