Petroleum & Energy Trade Finance

Energy commodity trading operates on strict lifting schedules and massive capital requirements. When your refinery allocation is ready, you cannot wait weeks for a traditional bank to approve a Letter of Credit.

We arrange dedicated trade finance facilities for mid-market petroleum and energy traders. As a core component of our structured trade finance placement services, we construct the transaction architecture to isolate risk. Across crude oil, diesel, gasoline, and natural gas, we syndicate your request directly to alternative funds capable of issuing the required MT700 or MT760 instruments without 100% cash collateral.

Oil products tanker BRO NISSUM sailing on the sea
Target Transaction Size USD 10M - 250M+
Core Instruments DLC, SBLC (MT700 / MT760)
Execution Focus Crude, Diesel, Gasoline, Natural Gas

Energy facilities we structure

We arrange capital specifically designed for the complexities of FOB and CIF petroleum logistics. We secure facilities based on the underlying energy asset and your end-buyer exit contracts.

Refinery Allocation DLCs

We secure the issuance of Documentary Letters of Credit (DLC) from top-tier institutions to satisfy refinery requirements. We structure the facility to release payment only upon successful product injection or vessel loading.

Revolving Trade Facilities

For traders with scheduled monthly liftings, we structure revolving SBLCs that automatically renew, ensuring uninterrupted supply chains for long-term allocation contracts.

Tank Storage & Logistics

We factor in the cost of tank farm extensions, TSA (Tank Storage Agreement) guarantees, and vessel chartering into the capital stack, ensuring you have the liquidity to physically move and store the product.

CIF / FOB Bridge Financing

Whether you are buying FOB Rotterdam or delivering CIF Houston, we structure bridge financing to cover the freight, insurance, and gap time before your end-buyer processes their final MT103 payment.

Energy categories we cover

Select a commodity to see how we structure the facility, the instruments involved, and the logistics we underwrite.

Crude Oil Trade Finance

We structure DLC and SBLC-backed facilities for crude cargoes across major grades and hubs, including FOB Rotterdam, CIF Houston, and Fujairah. Facilities are secured against the underlying cargo, the bill of lading, and your end-buyer SPA.

  • Instruments: MT700 DLC, MT760 SBLC, revolving credits for monthly cargo programs.
  • Logistics underwritten: SGS inspection, vessel nomination, tank farm injection, TSA and CPA terms.
  • Typical use: Cargo acquisition bridge, freight and insurance gap funding, refinery allocation support.

Energy Trade Syndicates vs. Commercial Banks

Parameter Commercial Banks Financely Energy Structuring
Collateral Requirement 100% cash-backed or corporate real estate Buyer contracts, BLs, and the underlying fuel
Understanding of Logistics Often lack insight into TSA and SGS complexities Deep alignment with FOB and CIF shipping mechanics
Issuance Speed Lengthy committee reviews Fast-tracked execution for urgent allocation windows
Risk Isolation Full corporate recourse required SPV architectures and non-recourse options

The Placement Execution

Petroleum trade finance requires absolute precision. We begin by analyzing your supplier Corporate Offer (FCO), your end-buyer SPA, and your logistics framework (TSA or CPA). We structure the necessary legal safeguards, draft the transactional credit memo, and immediately distribute the request to our active network of alternative energy trade lenders. We manage the dialogue from initial presentation to the final term sheet negotiation.

Submit an Energy Transaction

Send us the preliminary details of your petroleum trade or required instrument. We review all submissions to confirm viability and alignment with our syndicate before issuing a formal advisory engagement contract.

Submit Your Deal Details

Frequently asked questions

Which specific energy products do you structure facilities for?

We execute transactions across the major energy asset classes, primarily focusing on crude oil, diesel (EN590 10PPM), gasoline (92/95 RON), Jet A1, Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG).

Can you finance FOB Rotterdam or Houston trades?

Yes. We are highly accustomed to structuring facilities around major global hubs, including Rotterdam, Houston, Fujairah, and Singapore, factoring in localized tank farm and injection logistics.

What is the minimum transaction volume for energy trades?

Given the high capital requirements of fuel trading, we generally target a minimum face value of USD 10,000,000 per transaction or monthly revolving facility.

How is Financely Group compensated?

We charge a flat, upfront advisory retainer to cover the extensive financial engineering, SPV architecture, memo preparation, and active market syndication required to secure a term sheet for uncollateralized petroleum trades. This retainer includes our standard conditional refund guarantee.

This service overview is for general information only and does not constitute legal, tax, or investment advice. Financely Group is an advisory and arranging firm, not a bank, lender, or broker-dealer. Any financing is subject to the financing counterparty's underwriting, due diligence, credit approval, and documentation.