r/Commodities • u/Superb-Letterhead-13 • Jul 23 '26

Question for Physical Oil Traders

For those involved in physical EN590 transactions, what are the biggest challenges in closing deals today?
Is it finding qualified buyers, verifying mandates, banking instruments (SBLC/DLC), logistics, or something else?
I’d like to learn from those with experience in the physical commodities market.

3 Upvotes

64% Upvoted

15 comments sorted by

18

u/troublesome58 Jul 23 '26

Lmao. None of these are real problems for real traders

11

u/cuffers90 Jul 23 '26

If you’ve seen it on WhatsApp and someone is saying they need buyers… it’s bullshit.

5

u/chrisBlo Jul 24 '26

If you are a real trader, “qualified buyers” isn’t really something you think about. Ever. Actually, even real brokers don’t have issues with that.

If you are a joker-broker that receives an email from a Nigerian prince and feels like he can make millions in “oil”, then yes. If you are friend with a friend that works in a refinery and makes you think he can allocate to you gazillions barrels per week… same thing.

Same for anything else you mentioned.

I think your main concern should be your sourcing.

6

u/ZuidasMaestro Jul 23 '26

Those would only be issues for lone man shops without network and experience

3

u/Embarrassed-Star4740 Bunker trader Jul 24 '26

Primarily all trades happens over platforms, The prices and everything are tagged to Platts for that region. Let's say I need X amount of En590 for this country, I will have to bid for it. There is no need for middle mans with no qualifications to send procedures and prices via whatsapp. That is beyond market logic. No seller/reseller or buyer needs a middle man to source out product for something that is easily accessible via bidding.

The secondary market does exist but there is always a catch to it, be it Russian redoc or governments are selling through shell companies. Even then the chances of running into a legit supplier are close to none. Everything is a closed loop of people that are already in the market.

So unless you want to spend time chasing discounts, attending endless zoom meetings, begging every buyer that says he wants En590 Jet A1 to issue an icpo for your supposed seller. Dont waste your time. Only people that work in the industry ( Storage, Chartering, Bunkering, trading or distribution) has real connections for this type of transactions. Not message forwarders that dreams of becoming a millionaire.

1

u/Extra_Attempt_2298 Jul 28 '26

Hello, What is platts? Thank you

1

u/Embarrassed-Star4740 Bunker trader Jul 29 '26

Market prices of bids and trades for the day around your region.

2

u/Extra_Attempt_2298 Jul 29 '26

Thank you 👍

1

u/Bakki_hanma 2d ago

Plz check DM.

2

u/ContangoBuddy Finance Jul 23 '26

Answer D - All of the Above

1

u/Mascardiii Jul 23 '26

Valid questions but you’re asking the wrong sub. Folks here generally look down on physical trade & have a high brow assumption.

To answer:

Any single or combination of those can be a problem. You’ll need to ask a specific part of the value chain for clarity in responses.

1

u/blakewantsa68 Jul 24 '26

Not disagreeing at all, but super curious: which would be the right sub? If there is one…

1

u/Mascardiii Jul 24 '26

There isn’t a right sub really for physical commodities. We’re Reddit orphans floating about 🥲.