How to Spot a Fake Oil Deal Before It Wastes Your Time
How to Spot a Fake Oil Deal Before It Wastes Your Time
Most oil deals you see online don’t involve real oil. You’ll find phantom sellers, buyers with no capital, and self-appointed brokers pushing credits on non-existent cargo. Before you waste time chasing contracts, learn how to identify a sham transaction—and stop it in its tracks.
No Product, No Buyer, No Deal
A valid trade means someone owns crude, and someone else is ready to buy it. Fake deals have neither.
- “Seller” has no control —no oil, no terminal access, no loading rights.
- “Buyer” has no funds, banking line or intent—just hopes to flip to someone else.
- Brokers dream of commissions, but everyone in the chain is a middleman with no deal flow.
Red Flags That Say “Fake”
| Red Flag | What It Means |
|---|---|
| Mandates with no scope | Real traders work under internal approvals—not vague “seller mandates.” |
| $1/bbl commissions | Real spreads are pennies. Salaried traders don’t chase dollar commissions. |
| POP before contract | Proof of product comes after contract and KYC. Not before. |
| CIF deals below market | No one delivers product under market price with zero risk. |
| “International Arbitration Court, Paris” | This doesn’t exist. It's name-dropping to fake credibility. |
| “Putin knows the seller” | Boilerplate fantasy. Fake authority claims are hallmarks of fraud. |
How Real Traders Operate
Legitimate trading happens among refiners, producers, charterers, and trading houses. Here’s how:
- Negotiate FOB or DES terms supported by vessel bookings
- Agree on market-based spreads (e.g. $0.10–$0.25/bbl)
- Execute with standard SPA, invoice, BL—not stylised “procedures”
- Manage delivery, demurrage, inspection, and payment risk institutionally
No One Is Innocent Here
The entire pyramid is built on illusion. Sellers claim to have allocation but don’t. Buyers hope to resell nothing. Brokers pass papers without product or finance. Everybody thinks they’ll get paid. In reality, nothing closes.
Financely only works with real counterparties. If you own production, storage, or have confirmed funding, we can structure trade finance or private credit around a genuine deal. Otherwise, we don’t engage with mandates, all‑broker chains, or paper‑flips.
Submit a Legitimate DealStill Unsure? Ask These:
- Can you show terminal access documents verifiable with port authorities?
- Will funds be placed in escrow or via bank instrument?
- Is the cargo volume feasible for available VLCCs or Suezmax vessels?
- Do you have SPA, invoice, bill of lading—and not just PDF “procedures”?
- Who covers delivery risk, quality verification, demurrage, and price changes?
This article reflects standard practice in physical oil trading. Financely evaluates transactions backed by genuine production, storage, logistics or confirmed funding. We can’t work with speculative or unverified offers.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
