Structured Commodity Finance
Top 10 Traded Petroleum Products
Petroleum trading is a margin game with strict timing. Deals break when commercial terms, logistics evidence, and funding conditions are not aligned.
That is why operators with real demand still miss closing windows.
This page covers the ten petroleum products that dominate recurring physical trade, then shows how to structure a bankable finance file around each flow.
If you are running active cargoes, you can review our trade advisory scope on the trade finance services page
and our transaction model on how it works.
We operate as a transaction-led advisory desk: submission, indicative terms, mandate activation, underwriting, lender distribution, and execution support.
You can review the full service scope on our services overview
before submitting.
Top 10 Physical Petroleum Products In Active Trade
| # |
Product |
Primary Trade Use |
Typical Counterparty Chain |
Frequent Finance Need |
| 1 |
Crude Oil |
Refinery feedstock |
Producer or aggregator to refiner |
LC at sight/usance, contingent payment security, pre-export support |
| 2 |
Ultra Low Sulfur Diesel (ULSD / Gasoil) |
Transport and industrial fuel |
Refinery or trader to importer and distributors |
Import LC, receivables bridge, revolving line |
| 3 |
Motor Gasoline |
Road fuel supply |
Trader to terminals and wholesale distributors |
Inventory-backed short-tenor debt |
| 4 |
Jet Fuel (Jet A-1) |
Aviation supply |
Refinery or trader to airport fuel systems |
Contract-backed working capital and assignment of proceeds |
| 5 |
Fuel Oil (VLSFO / HSFO) |
Marine bunkering and power use |
Trader to bunker suppliers and industrial buyers |
Cargo-linked payables and receivables facilities |
| 6 |
Naphtha |
Petrochemical feedstock |
Refinery or trader to petrochemical processors |
Feedstock lines with concentration limits |
| 7 |
LPG (Propane / Butane) |
Retail gas and industrial heating |
Processor or trader to terminals and distributors |
Seasonal import finance and storage-backed structures |
| 8 |
Petroleum Coke |
Cement and industrial fuel |
Refinery to industrial offtaker |
Shipment finance with commodity controls |
| 9 |
Bitumen / Asphalt |
Road and infrastructure projects |
Refinery or trader to project contractor |
Milestone-based procurement finance |
| 10 |
Base Oils and Lubricant Inputs |
Lubricant blending and industrial operations |
Refinery to blenders and industrial users |
Inventory plus receivables financing |
How We Structure Commodity Finance For Petroleum Trades
Documentary Credit Structuring
LC language aligned with inspection points, shipment timelines, and acceptable document presentation standards.
Payment Security Engineering
SBLC or guarantee frameworks tied to contract default triggers when counterparties require risk backstops.
Working Capital Design
Pre-shipment, in-transit, and post-shipment facilities mapped to actual cargo cycles and receivables timing.
Borrowing Base Discipline
Collateral eligibility, haircut rules, reporting cadence, and concentration limits defined before placement.
Underwriting Memo And Risk Map
Credit narrative, contractual risk allocation, compliance stack, and downside protections for lender decisioning.
Lender Distribution And Execution
Controlled outreach, term comparison, and condition cleanup through credit response and closing sequence.
Why Decision-Makers Trust This Process
Our process is built for live transactions, not academic commentary. We use contract-first underwriting, document-control checkpoints, and compliance screening before distribution.
Engagement terms are written, scope is defined, and outputs are measurable. You know what is being delivered, when it is being delivered, and what decisions are needed from your side at each step.
If your team is preparing its first financed cargo cycle, review the practical framework in our
trade finance section
and align your file with the submission format used by our underwriting desk.
Mandate Economics
| Tier |
Use Case |
Upfront Retainer |
Success Fee |
| Entry Commodity Mandate |
Single corridor transaction with one financing objective |
USD 27,500 |
From 3.25% |
| Core Structured Commodity Mandate |
Recurring petroleum liftings with multi-step finance support |
USD 59,500 |
From 2.25% |
| Complex Multi-Country Mandate |
Layered capital stack with higher compliance and document complexity |
USD 95,000 |
From 1.50% |
Mandates are best-efforts. Financely does not guarantee approvals and does not provide direct loans without partner underwriting and final credit consent.
Submit Your Petroleum Trade File
If your cargo is live and you need a lender-ready structure, submit the transaction for screening and indicative terms.
Submit Your Deal
FAQ
Do you finance petroleum trades directly?
No. We structure and distribute transactions through funding partners and lending channels.
Can first-time traders apply?
Yes, if the file is coherent, counterparties are credible, and document quality is acceptable for underwriting.
Do you work with LC and SBLC structures?
Yes. Documentary-credit structuring is one of the core components of our commodity mandates.
Can you structure CFR and CIF cargoes?
Yes. We map controls to Incoterms obligations, title transfer points, and insurance responsibilities.
What if a lender declines?
We document the reason, adjust structure when feasible, and continue targeted outreach within mandate scope.
Where do we start?
Start with the deal submission flow so we can screen fit and issue a structured next-step path.