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Forward Sales Period Begins in the Oil Market. 60-Day and 90-Day Term Purchasing in EN590 10 PPM and Crude Oil Sales.

Crude Oil

In the Petroleum and Crude Oil market, companies have now changed their Refinery and Gas Station purchasing methods to Future purchases due to the different approaches of buyers.

It is known by everyone that many companies in the Turkish Market purchase oil through forward purchases, but there is no maturity option in European sales, cash purchase transactions continue. In Turkey and many countries around the world, Crude Oil is sold with a maturity of 60 or 90 days.

Crude Oil

Refineries selling crude oil in the new market have started to make serious sales through supplier companies, especially in forward sales. First of all, there are different price understandings in Crude Oil sales of countries such as Russia, Iraq, Nigeria and Qatar due to quality differences.

In general, Crude Oil sales in the world market were already traded on forward basis in direct sales to refineries, but due to the increasing demand recently, the Oil Market has started to look more favorably at forward purchases and sustainable purchases. We see that new purchasing procedures for Crude Oil trade are carried out with 60 to 90 day maturity sales.

EN590 10 PPM sales are made with a maturity of 30 days. 10 PPM ULSD, which is included in the purchasing procedures of the refineries, do not prefer spot products in new purchases. They carry out monthly planning and product purchases for continuous and sustainable products. In this context, it means that we can no longer look for buyers and supply products through Refineries.

The general understanding of trade in Turkey is through brokerage firms, but many brokerage firms take responsibility for the product in order to sell without a real buyer, but since they cannot sell the product, they cause serious problems to the sellers regarding both Ship Demurrage payment and tank payment.

Crude Oil

In fact, the sellers are at fault here; they put the product at risk by not working with real and reputable companies and by sharing product documents with people they are not sure can sell to. There are many proven companies in Turkey, working with these companies will be a very important step for sellers.

Under any circumstances, when a product is delivered to more than one person, the sale of that product does not proceed properly with sales rights.

The first rule of trade is mutual trust. No matter the value of the product or the quantity of the product, when a company assumes responsibility for a million-dollar trade, it does not engage in any behavior that would harm the other company or leave it in a difficult situation. Therefore, if he does his research correctly and knows the company to which he delivers the product well, he will not have any problems in selling the product.

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