If in doubt just knock on the doors of https://www.rosneft.com/Investors/beware/
Policing fraudulent physical petroleum transactions across the globe, they are all over the net.
Agents and Mandates of Rosneft?
No agents or mandates or facilitators exist! Online offers that you see are pure fairy-tales! 😎
If in doubt just knock on the doors of https://www.rosneft.com/Investors/beware/
If in doubt just knock on the doors of https://www.rosneft.com/Investors/beware/
A typical fraudulent offer for fuel (example #1)
So here's how one of the typical fraudulent offers look like, for the so-called sale of petroleum products.
Did I mention they have become quite artistic of late as well? Adding in sexy images of oil refineries and all to make themselves look as knowledgeable as possible!
First redflag - CIF ASWP
Second redflag - JP54. This is a typical nomenclature deemed as a genuine jet fuel used by scammers and facilitators. If you do some homework, you will find that no one NO ONE in the real world labels any jet fuel type as 'JP54'. This is a dead giveaway that you are dealing with a pure swindler. Be mindful though, many of these tricksters have become smarter these days and immediately try to associate 'JP54' with 'TS-1', which is a genuine jet fuel type commonly used in CIS states.
If unsure, do an experiment for yourself and write to any real refiner or trading house requesting for 'JP54'. You will not get an answer and you will probably lose your reputation as well as the chance of doing any business with them ever again.
Third redflag - FOB Rotterdam. As I was saying, these jokers only ever know of Rotterdam and Houston. They seem to think that the whole world stores oil only in these two ports. So they must have product sitting in THEIR tanks there, waiting for you to pick it up since its FOB. If so, you should gladly make some verification with the port authorities and you will know if you're wasting your time.
Fourth redflag - Procedures. What procedures? Real and experienced traders never talk about 'procedures'.
Fifth redflag - Its always along the lines of "D2, JP54, MAZUT, BLCO, REBCO, LNG, EURO V, EN590" that these swindlers offer. Not identical, but roughly similar. For some reason, these amazing oil traders have access to a myriad of petroleum products like some online supermarket that only a fool will believe.
I kinda wish there was an authoritative organisation worldwide that would govern and flush these buggers out. It tarnishes the beauty and genuineness of physical oil trading. Sadly, you're up against the internet.
Did I mention they have become quite artistic of late as well? Adding in sexy images of oil refineries and all to make themselves look as knowledgeable as possible!
Second redflag - JP54. This is a typical nomenclature deemed as a genuine jet fuel used by scammers and facilitators. If you do some homework, you will find that no one NO ONE in the real world labels any jet fuel type as 'JP54'. This is a dead giveaway that you are dealing with a pure swindler. Be mindful though, many of these tricksters have become smarter these days and immediately try to associate 'JP54' with 'TS-1', which is a genuine jet fuel type commonly used in CIS states.
If unsure, do an experiment for yourself and write to any real refiner or trading house requesting for 'JP54'. You will not get an answer and you will probably lose your reputation as well as the chance of doing any business with them ever again.
Third redflag - FOB Rotterdam. As I was saying, these jokers only ever know of Rotterdam and Houston. They seem to think that the whole world stores oil only in these two ports. So they must have product sitting in THEIR tanks there, waiting for you to pick it up since its FOB. If so, you should gladly make some verification with the port authorities and you will know if you're wasting your time.
Fourth redflag - Procedures. What procedures? Real and experienced traders never talk about 'procedures'.
Fifth redflag - Its always along the lines of "D2, JP54, MAZUT, BLCO, REBCO, LNG, EURO V, EN590" that these swindlers offer. Not identical, but roughly similar. For some reason, these amazing oil traders have access to a myriad of petroleum products like some online supermarket that only a fool will believe.
I kinda wish there was an authoritative organisation worldwide that would govern and flush these buggers out. It tarnishes the beauty and genuineness of physical oil trading. Sadly, you're up against the internet.
In the name of Storage Tanks
For some reason, most of these scammers and fraudsters only know of Rotterdam as the only port in the world.
So all you hear is FOB Rotterdam, FOB Rotterdam, FOB Rotterdam. Take it from my tank! Here are my storage receipts! But but first I need some 'upfront logistics and administrative fees'...
Yeah right.
So much so that the actual Port of Rotterdam via their intel division FERM has to establish a very handy blacklist of these so-called 'storage tank spoofers'. Till this day in 2019, they are still adding names to the list. Goes to show that the number of scams are still on the rise EVEN TO THIS DAY WHICH IS PRETTY AMAZING.
You can check out the list here.
Many of these are actually fake websites that use very similar names to actual and legitimate oil and trading companies. +1 for creativity.
So all you hear is FOB Rotterdam, FOB Rotterdam, FOB Rotterdam. Take it from my tank! Here are my storage receipts! But but first I need some 'upfront logistics and administrative fees'...
Yeah right.
So much so that the actual Port of Rotterdam via their intel division FERM has to establish a very handy blacklist of these so-called 'storage tank spoofers'. Till this day in 2019, they are still adding names to the list. Goes to show that the number of scams are still on the rise EVEN TO THIS DAY WHICH IS PRETTY AMAZING.
You can check out the list here.
Many of these are actually fake websites that use very similar names to actual and legitimate oil and trading companies. +1 for creativity.
The LOI Part #1
I've been hearing a lot about LOIs. The amateurs get a little confused because when they attempt to google about a LOI in trading, there is a legitimate result! Yet they also come across LOI in its phony jargon conjured by the dopey con-men.
So whats the real deal and what isn't?
The real LOI - Letter Of Indemnity
__________________________________________________________
LOI in the real world of physical trading stands for a Letter Of Indemnity.
There are 2 types of such LOIs.
One is used for the discharge (and in some instances release) of physical cargo because of the absence of shipping documents.
One is used in L/Cs to make payment against in the absence of shipping documents, normally addressed to the bank issuing the L/C.
Nobody in the real world of physical trading references a LOI as a Letter of Intent or Letter of Interest.
No such procedure or step is ever needed or required to initiate commercial interest.
Its easy to tell the real from the fakes.
Examples to follow.
So whats the real deal and what isn't?
The real LOI - Letter Of Indemnity
__________________________________________________________
LOI in the real world of physical trading stands for a Letter Of Indemnity.
There are 2 types of such LOIs.
One is used for the discharge (and in some instances release) of physical cargo because of the absence of shipping documents.
One is used in L/Cs to make payment against in the absence of shipping documents, normally addressed to the bank issuing the L/C.
Nobody in the real world of physical trading references a LOI as a Letter of Intent or Letter of Interest.
No such procedure or step is ever needed or required to initiate commercial interest.
Its easy to tell the real from the fakes.
Examples to follow.
The myth about Russian mandates
They don't exist. That's all there is to it.
Any 'Russian mandate to the supply of petroleum products' you hear of is pure fabricated bs, period.
If unsure, start with the email redflags.
Any 'Russian mandate to the supply of petroleum products' you hear of is pure fabricated bs, period.
If unsure, start with the email redflags.
Procedures? What procedures?
Whenever someone starts talking about ‘procedures’, it is a clear giveaway of the amount of experience and knowledge he or she has about physical trading.
What procedures? A load of rubbish!
__________________________________________________________
Proper physical traders never talk about procedures.
It is a well-known fact that upon closure of a deal, an email exchange constituting the terms of the trade follows, or what is otherwise known as a ‘deal recap’ or ‘trade recap’.
Thereafter, depending on the terms of the deal, multiple departments (for example chartering, operations, contracts, credit) start to get to work concurrently – it could be finding a vessel, clearing a vessel, negotiating the sales contract and L/C, registering the counterparty, appointing the surveyor etc.
In the wannabe world of trading, a step by step ‘transaction procedure’ is established by the fraudsters which is quite imaginative to be honest. It will usually look something like this:
The slightly smarter brokers have tried to eliminate the first step to make themselves look ‘professional’. Little do they realise that no such jargon is used in an actual physical deal.
What procedures? A load of rubbish!
__________________________________________________________
Proper physical traders never talk about procedures.
It is a well-known fact that upon closure of a deal, an email exchange constituting the terms of the trade follows, or what is otherwise known as a ‘deal recap’ or ‘trade recap’.
Thereafter, depending on the terms of the deal, multiple departments (for example chartering, operations, contracts, credit) start to get to work concurrently – it could be finding a vessel, clearing a vessel, negotiating the sales contract and L/C, registering the counterparty, appointing the surveyor etc.
In the wannabe world of trading, a step by step ‘transaction procedure’ is established by the fraudsters which is quite imaginative to be honest. It will usually look something like this:
- Exchanging something called a LOI/SCO/FCO/ICPO
- Signing of CI/SPA (Sales & Purchase Agreement as what they call it and it usually goes for 12 months)
- Signing of NCNDA (Non-Circumvention Non-Disclosure Agreement as what they call it)
- Exchanging some POP (Proof of Product as what they call it) like TSR (Tank Storage Receipt), DTA (Dip Test Authorisation) or SGS Report (seems like they only know of SGS)
- Sending of Swifts MT103/799/705 between banks
- Lift as per ‘schedule’ of the SPA
The slightly smarter brokers have tried to eliminate the first step to make themselves look ‘professional’. Little do they realise that no such jargon is used in an actual physical deal.
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