Liquid Operative was created to warn greedy people looking to make a quick buck from physical commodity trading without knowing how it actually works.
As lucrative as it may seem, the complexities of moving a pure physical oil cargo go far beyond just marrying a buyer and seller via a couple of emails and hoping to get a ‘fee’ out of it - from clearing a vessel to appointing agents and surveyors, negotiating sales contracts and LCs, dealing with demurrage claims, issuing invoices etc and the list goes on and on.
This is why only entities with both the financial AND logistical know-hows are able to do a physical trade today.
Of course, you do hear of smaller physical trading shops every now and then set up by former employees from a particular trading floor.
But what you do not entertain is someone posting offers of petroleum products on the worldwide web in some strange jargon that is never used in the real world. These people or so-called 'facilitators', have ZERO knowledge of how a physical trade is actually done and will probably move on to broker real estate or flip shit on Carousell the very next day.
The commodities circle is small and tight-knit, particularly in this day and age where everyone is looking to consolidate given the increasing transparency in the markets. This is not an industry where someone can just knock on the door overnight and hope to close multi-million dollar deals. This is not an industry where someone with a billion dollars can just hope to venture into and start doing business. This is not an industry where someone who thinks he or she can easily evolve into a 'trader' just because he or she has worked in the oilfields before.
Please share the word to prevent people from falling further into a bottomless pit.
Policing fraudulent physical petroleum transactions across the globe, they are all over the net.
