JP54 $72/$66, D2, LNG, Mazut, ULSD, BLCO – Lower Oil Prices New Normal

RJ Hender – Honest Oil Seller
Jan 2, 2015
Subject; JP54 $72/$66, D2, Mazut Oil Preparation 2015
www.MorningLiberty.com

Below I have laid out procedures for securing BLCO, JP54, D2 and Mazut…

Could lower oil prices be the new normal? When US oil prices dropped from $107 a
barrel to around $54 per barrel, it’s boosting consumer spending but it’s rocked
many oil producing nations. Will OPEC’s next meeting in July manipulate oil to higher
rates or are we on the doorstep of a 3 year trend of cheap oil?

My family needs milk whether we can buy it at $2 per gallon or when it the price rises to
near $5 per gallon. Some oil needs exist whether the JP54 rate was at $98 or as we
have recently had Spot Offers for $72/$66 CI, Dip & Pay. See if these procedures
work for you.

It’s oil preparation time, between now and January 15th. It’s the perfect time to
exchange Oil Buyer and Oil Seller docuemts, before some of my Direct to Refinery sources
kick in gear D2, JPA1, Mazut, JP54, LNG, ULSD, D6, LPG, Bitumen and other oil supplies
for Buyers in 2015. If you’re ready to provide legitimate ICPO and CP Buyer documents,
then contact me and I will introduce you to my Direct Seller Friends. RJ@MorningLiberty.com

SOFT CORPORATE OFFER from 1 of my Direct to Refinery Sources…
PRODUCT…
Product: Jet Fuel JP54
Quantity: 500,000 to 2 million Barrels
Price: Gross $72 / Net $66 /Barrels)
Origin: Russian Federation
Commission: Seller Side USD $3 / Buyer Side $3

Product: D2 Gasoil GOST 305-82
Quantity: 30,000 to 100,000 Metric Tons
Price: Gross$680 / Net $670 Metric Tons
Origin: Russian Federation
Commission: Seller Side USD $5 / Buyer Side $5

Product: MAZUT-100 GOST 10585-75
Quantity: 30,000 to 100,000 Metric Tons
Price: Gross$330 / Net $320 Metric Tons
Origin: Russian Federation
Commission: Seller Side USD $5 / Buyer Side $5

DIP TEST, CI and PAY PROCEDURES
1. Buyer issue ICPO
2. Seller issues Draft Contract and CI for Spot Lift able and Buyer returns
signed/deal Draft Contract with signed CI to Seller
3. Seller issues to buyer Assurance -Letter to inject the fuel from the
Sellers storage reservoir to storage Tanks at Loading Port to be leased by
the Buyer with Seller’s TSR and Q-Q report.
4. Within 2-3 business day after verifying Sellers Assurance Letter, TSR, &
Q-Q report, Buyer lease tank-storage to receive the product & send to seller
Tank Storage Agreement a& Tank storage Receipts for approval.
(Alternatively. Buyer sends Q88 + CPA + Charter-Receipt in case of using
Tanker-Vessel)
5. Seller issue Injection Code & DTA, and Buyer sends Port Clearance
Certificate in case of T-Vessel
6. Upon confirmation of act of transfer in buyer’s name, Seller issues to
the buyer, Title of Ownership Certificate to be followed by all export
documents. Buyer conducts dip test and lifting commence and Buyer release
payment by MT103 TT Wire as agreed by the parties
7. Seller pays commission to intermediaries
8. Seller sends to buyer SPA for 12 months. Buyer signs and return singed
SPA with IRDC opening for guaranteed procedure 2-7 repeat per month for 12
Months deliveries

PLEASE NOTE: If the above negotiation terms and working procedures are
acceptable by your company/end buyer, kindly issue an ICPO/LOI: XXXXXXXXX XXXXXXX

Trust Takes Time, and I may be new to you, but I have been working with some of these
oil sources since 1985. Some of my oil friends I have been working with since 2002 and
a few of my direct to refinery sources, I have been working with for a couple of years.
In the game of ‘ You Show Me Your POP and I’ll Show You My POF, ‘ nobody wins. At some
point, we need to decide to work with each other and find some middle ground, for the
benefit of the End Buyer and Seller.

When you contact me for oil, there are some things that I need from you. I need to
know your name, your Skype name, your phone number, the oil product(s) you are in need
of, the destination for the fuel, and ICPO & CP buyer documents.

In the Bonny Light business, it’s amazing that I have 4 Strong BLCO sources, that have
fallen into my lap. We have had several Face to Face, table top closes. Many BLCO
buyers prefer to lift their fuel at Rotterdam. Some BLCO buyers are plesed to lift from
Cotonou. I’d be happy to arrange a BLCO conference call with legitimate End Buyers, but
we need to know that we are dealing with buyers with POF. Contact me RJ@MorningLiberty.com

I don’t know whether oil prices will stay this low for 3 months, or 3 years or whether
the prices will go lower or whether oil prices will rise to even higher levels. I only
know that many Major Oil Buyers bang on my oil door every week, asking for more supplies
of jet fuel, diesel fuel, heating oil, crude or other oil products.

There is no way that I can do my Oil Work alone. As I work with 12 Direct to Refinery
Seller groups, I do my best to match every End Buyer with the right Seller. It’s interesting to see how personalities or procedures can get in the way of an oil transaction.

I am awaiting fresh SCOs for 2015, from one of my main Direct to Refinery sources. Usually, we require ICPO and CP buyer documents before we provide any SCO. Below are SCO details for D2 we sold before Dec 1st, 2014. These procedures would be similar for other oil products; JP54, Mazut, D6, LNG, JPA1, etc…
Soft Corporate Offer for November, 2014…

XXXXX XXXXXX XXXXXXX, representing oil seller in the Russian Republic is making this offer on behalf of the seller. Once the buyer has agreed to the terms and conditions below an ICPO will be required and the seller will provide a Full Corporate Offer and a draft
contract. Please see the agreed price and the specified in the Terms and Conditions below:

1. NAME OF PRODUCT: D2-Gas Oil GOST(305-82)
2. ORIGIN:RUSSIA
3. TOTAL QUANTITY: UP TO 3,000,000MTONS/YEARLY, APPROXIMATELY 250,000 MT/MONTHX12
MONTHS
4. CONTRACT PERIOD: ONE YEAR(12MONTHS)
5. D2, USD $600 PER MTON CIF, D2 COMMISSIONS: $5PER MTON SELLER SIDE, $5PER MTON
BUYER SIDE
6. TERMS OF PAYMENT: POF MT799 OR REVOLVING DOCUMENTARY LETTER OF CREDIT
(with a Validity Period of 4 Months) within 5 Banking days after receiving and verifying PPOP).
7. PERFORMANCE BONDS: 2% FROM SELLER, AFTER BUYER PAYMENT INSTRUMENT.
8. SHIPMENT: TRI A L S H I P M E N T : 50,000 MT.

PROCEDURE:
1. Buyer send’s ICPO and or BCL to Seller.
2. Seller send’s Draft Contract
3. Upon acceptance of Draft contract, buyer and seller execute the contract
4. Buyer signs and returns the contract and both parties lodge contracts at their respective banks.
5. Buyer sends to Seller signed ICPO from Bank or bank BCL, stating their willingness to send the
Instrument and at a stated Time and date.
6. Seller send’s as PPOP the following: Attestation Copy for Proof of Availability of Product, Tanker’s Storage
Receipt, Proof of Commitment to Produce the Product, Dip-Test Authorization, + One Past Trade Reference and
First Page of Seller’s National Passport.
7. The Buyer issues a payment instrument with a minimum Validity period of 4 months.
The following instruments are allowed: POF MT799 OR DLC (which must be
Revolving). No other instrument is allowed.
8. Seller signs contract with the shipping company, with Official Notification to Buyer
by Shipping Company.
9. Dip Test Analysis OPTIONAL, and at Buyer’s Expense. The Test Analysis Report must be carried out by Seller’s Appointed Russian Accredited Company among Buyer’s Representative Group. Seller send’s 2% performance Bond
(PB) to activate the Buyer’s Payment Instrument. XXXXX XXXXXXX XXXXXX
10. Seller Swifts POP to the Buyer’s bank for verification and Confirmation from the Seller’s bank.
11. Seller sends via express Courier the registered Hard Copies of the contract to the buyer; both parties lodge their copies of the registered contract with their respective banks.
13. Lift commences with SGS Survey Report.
14. Buyer release payment to the seller at sight MT103 after shipment, delivery per shipping schedule program via SWIFT Fund Transfer within 5 (five) banking days, after discharge of cargo and receipt of all relevant shipping documents for immediate negotiation, and credited at buyer’s bank account.
15. Seller releases payment to all brokers.
Regards,
XXXXX XXXXXXX XXXXXX

For Bonny Light, these are our NNPC/Seller Procedures…

1. PRODUCT: Nigerian Bonny Light Crude Oil

2. QUALITY: Standard Export Quality APT @ 60 Deg F Min 35.5 Max 37.00

3. QUANTITY: TBA million barrels (+/-10%)

4. DURATION: Spot lifting then a contract for 12months with possible rollover right on
buyer.

5. SHIPMENT: TBA million Barrels (+/-10%) per month.

6. DELIVERY: TBA (Bonny Ocean Terminal Loading Port).

7. PRICE: Based on 3 (three) days average of the mean Brent (DTD) Platt (Dated New
York) price,less discount. The price shall be average of the day before the date of
loading, the day of loading and the day after the day of loading. The applicable currency
in respect of payment for the cargo shall be
United States Dollar (USD).

8. DISCOUNT: AS PER AGREEMENT.
Procedures: (only use the one that is applicable to your
transaction)

FOB PROCEDURE
1. SELLER AND BUYER SIGN CONTRACT AND BUYER RETURNS SIGNED
CONTRACT WITH VALID VESSEL DOCUMENTS, CPA, INVOICE OF CHARTER AND
Q88 FOR SELLER TO VERIFY.

2. SELLER GIVES BUYER PARTIAL POP FOR VERIFICATION.

3. BUYER ISSUES PRE ADVISE MT199 (SEE VERBIAGE) TO SELLERS BANK BY
SWIFT.

4. SELLERS BANK ISSUES 2% PB TO BUYERS BANK

5. BUYERS BANK ISSUES MT 760 SBLC FOR THE TOTAL VALUE OF THE CARGO.

6. SELLER CALLS IN BUYERS VESSEL FOR LOADING, AFTER LOADING,
NOMINATE AN INDEPENDENT INSPECTION COMPANY FOR Q AND Q.

7. Q AND Q IS DONE AND IT’S OK BY BOTH PARTIES.8. SELLER’S ISSUES ALL DOCUMENTATION IN BUYERS NAME.

9. SELLER MOVES THE VESSEL TO INTERNATIONAL WATER FOR BUYERS
INSPECTION TO CONDUCT SECOND Q AND Q. AND IT’S OK BY BOTH PARTIES.

10. FULL PAYMENT FOR THE PRODUCT IS MADE VIA MT103 TO SELLER AND
ALL BROKERS.

CIF PROCEDURE
A. BUYER AND SELLER SIGN AND SEAL CONTRACT AND LODGE WITH THEIR
RESPECTIVE BANKS; ELECTRONIC COPIES OF EXECUTED CONTRACT ARE
DEEMED LEGAL. BUYER VERIFIES THE BULK ALLOCATION INFORMATION
CONTAINED IN THE CONTRACT WITH APPROPRIATE AUTHORITIES AS THIS
SERVES AS SELLER’S POP.

B. BUYER’S BANK SENDS RWA TO SELLER’S NOMINATED BANK STATING
WILLINGNESS AND ABILITY TO CONCLUDE THE TRANSACTION AND
CONFIRMATION THAT FUND IS SET ASIDE FOR THIS CONTRACT.

C. UPON SELLER’S BANK RECEIPT OF THE RWA, SELLER INSTRUCTS HIS BANK TO
CONFIRM TO BUYER’S BANK, SELLER’S ABILITY TO PLACE 2% PERFORMANCE
BOND.

D. UPON BUYER’S RECEIPT OF THIS CONFIRMATION (PROCEDURE 3 ABOVE),
BUYER’S BANK WITHIN 5 BANKING DAYS, PLACES INSTRUMENT FOR ENTIRE
CARGO VIA MT760 BG OR MT700 DLC. SELLER’S BANK RESPONDS WITH A 2%
PERFORMANCE BOND TO BUYER’S BANK WITHIN 3 BANKING DAYS OF POSITIVE
VERIFICATION OF THE FINANCIAL INSTRUMENT.

E. WITHIN 5 BANKING DAYS, SELLER LOADS VESSEL, ISSUES COMPLETE CARGO
DOCUMENTS TO BUYER AND INSTRUCTS CAPTAIN TO ISSUE NOR TO REFINERY
/PORT OF DISCHARGE. CAPTAIN OF VESSEL SHALL ISSUE A CONFIRMED ETA.

F. CAPTAIN OF VESSEL SHALL ISSUE ATB TO BUYER’S INSPECTORS AND
SUPERCARGO AT LEAST 24HOURS BEFORE ARRIVAL AT POD.

G. WITHIN 24 HOURS AFTER BERTHING AT POD, BUYERS INSPECTORS SHALL
CARRY OUT Q AND Q INSPECTION INSIDE THE VESSEL BEFORE DISCHARGE AND
ISSUE AND REPORT TO SELLER AND BUYER.
H. BUYER’S BANK MAKES FINAL PAYMENT VIA SWIFT MT103 AND ALL
INTERMEDIARIES ARE PAID. IF THESE PROCEDURES ARE ACCEPTABLE TO YOU,
PLEASE PROVIDE US WITH THE NAME OF THE BUYER (COMPANY NAME) AND OUR
SELLER WILL

Here is to a strong Oil Year 2015 RJ Hender – Honest Oil Seller


Related Articles:


D2, LNG, ULSD, JP54, Mazut, BLCO Prep – Spot Deals Avail

Below Platt D2, JP54, Mazut – Direct to Refinery Oil Sources

LNG, ULSD, Mazut, JPA1, BLCO, D6, D2, JP54 Operations – Following Procedures

JP54, JPA1, D2, LNG, Mazut, BLCO Flow – LOI & CP Necessary from Legit End Buyers

BLCO, JP54, D2, D6, Mazut Seller – Genuine Buyers Appreciated

D2, JP54, LNG, Mazut, BLCO Ready – End Buyer Letter of Intent Required

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply