Crude Oil Selling Procedures That Sell In Immediately’s Internet Era

Most Crude Oil And Petroleum Product Sellers, Brokers and Brokers, in the International “Secondary” Oil Market, Do not Make Any Gross sales Or Earnings. Do You Ever Marvel Why?

A major “HIDDEN SECRET” OF OIL SELLERS & BROKERS: MOST Do not MAKE ANY Sales or Income

Oil Refinery Plant Area Stock Photo - Image: 45506005

Crude oil and petroleum products sellers, and their brokers and agents, who function in the so-referred to as “secondary market” of the worldwide oil market in the present day, do not often discuss this, or like to take action. Or like the very fact about this to be identified. In deed, many of them would relatively that it’s saved obscured, or just misrepresented. However, the actual fact is that one distinctive a part of their enterprise “actuality” is that this: as a group, they continuously shut no offers nor make any gross sales for the oil product they purport to have accessible to promote, and, actually, the overwhelming majority of them usually go for months, even years, or maybe for ever, without ever touchdown even a single gross sales contract or deal. It is probably what may simply be referred to as “the open secret” of the oil selling business!

C. Keila Nakasaka, a California attorney and actual estate investor and entrepreneur, who performed in depth market analysis and investigations into the D2 diesel oil trade to see if he could prudently recommend taking on the commission broker’s job to his clients, says he got here away from his analysis tremendously disillusioned and disillusioned. In accordance with him, the “stories that these brokers concoct are that the vendor has some direct connection with a refinery. Some even declare that the vendor is, the truth is, one of many main vitality corporations in Russia… [however] what bothered me [the most] is that just about each one of these brokers did not be forthcoming. They usually misrepresented themselves as mandates, direct representatives, and even purchaser and sellers.”

Most likely the principal and most delicate thing about which most such sellers and intermediaries (the brokers, facilitators, mandates, brokers, and so forth.) are least “forthcoming” and “misrepresenting” about, is concerning the number and volume of gross sales offers they’ve ever closed, if any, or the revenue they’ve earned within the commerce, if any. Simply put, nearly all of those operatives typically close no offers, and earn almost nothing. Most of them go for months, even years – or ceaselessly – without successfully closing any sales offers, not to talk of earning even a dime in commission revenue!

As Nakasaka put it, describing his findings: “Another issue which I thought was odd was that most of the brokers I spoke with by no means closed a D2 deal despite their months and sometimes years on this enterprise. There was one broker who claimed that he had pending deals, and two who acknowledged that they did actually shut these deals. Nevertheless, I didn’t discover them credible.”

Major Reasons FOR THIS, WHICH ACCOUNT FOR WHY MOST “SECONDARY MARKET” SELLERS & THEIR INTERMEDIARIES Never Shut ANY Offers

Why is that this so – that they make no gross sales or revenue? Many components account for it. They might roughly be summed up as follows:

1. MOST SELLERS (and their intermediaries) ARE Fake, ANY Approach, WITH NO CRUDE OR OIL PRODUCT TO Promote

A truth that is by now properly-established and never subject to any disputation whatsoever among credible specialists in the business, is that the overwhelming majority of promoting gives peddled by crude oil and petroleum product “sellers” within the so-known as “secondary” oil markets, and their brokers, brokers, and other intermediaries, are fake and bogus. In deed, some objective studies and analysis have put its extent at a whopping stage of some ninety nine.999999 percent of all offers introduced for sale. In all probability the only thing of a lot redeeming worth that may very well be said about this, is that with particular respect to those that act as overseas brokers and intermediaries in the enterprise, some of them could usually be engaged fraudulently within the enterprise however innocently and unwittingly, mistakenly believing that the deal or selling operation is genuine and professional, when it truly just isn’t.

2.LACK OF Proper Coaching, Skills OR Knowledge IN The fundamentals OF THE Enterprise

Put very merely, maybe nowhere is the saying that “we dwell in a large interconnected world” more applicable as we speak than on the earth of the worldwide buying and promoting of crude oil and petroleum products. For the most half, virtually all that one wants to be able to grow to be a “seller” of crude oil or petroleum product, or his agent, respectable or not, who’re operating out of any part of the world, is just to have an access to a pc and an Internet connection. That’s nearly all! Unfortunately, nonetheless, one dire unfavourable impact of this so-called “revolution of the Internet” (among many others), has been that many who now declare to be, or operate as, “sellers” or the sellers’ “brokers” or “agents,” are largely uneducated or semi-illiterate, untrained and unskilled, and are missing in any data of the correct fundamentals of worldwide oil trading.

Kamal J. Southall, one of many foremost experts on the topic, whose guide, “Commerce Fraud, Financial Fraud, and the Joker Broker,” is probably the most authoritative texts on the phenomenon, puts it this way:

“Have you observed that as you have searched Google and libraries, and appeared excessive and low, finding bits of data here and there, you encounter attention-grabbing phenomena: little or no practical information on the art and science of dealing in International trade as an impartial trader exists in any comprehensive way. Sure practices, documents, and procedures; mysterious acronyms such as “NCND” or “MPA,” are thrown again and forth, badly corrupted model documents and forms may filter your way, however the reality is that most attempted house based traders, brokers – or, extra correctly, intermediaries – learn via extremely costly ‘trial and error,’… typically re-inventing the wheel each time, in that ever-elusive search for a deal and data on how to close that deal.”

Southall estimates, citing another skilled’s calculation, that out of some one million people presently making an attempt to make it as brokers or commerce intermediaries in the world, “perhaps no more than 1% has the training and talent wanted to ever shut a deal… [that means that] the overwhelming majority, are trading blindly, [hence] offers are collapsing… and extra to the point, [oil dealers are] being defrauded – typically massive..”

Mr. R. Ambardar, a broker of over 10 years of broad expertise in worldwide market improvement and advisory providers, calls “lack of expertise and knowledge” one of the principal explanation why many brokers and facilitators fail in crude oil endeavors. “Many persons are attracted into this business because of [the tales they hear concerning the] kind of money one can earn on account of profitable offers. Many brokers fail, [nonetheless], to know that requirements to succeed on this enterprise are very demanding, [and that] Solely those who’ve years of fingers-on expertise and thorough data of the trade can strive to do effectively as center-males.”

An incredible many number of brokers, Ambardar adds, forget that “To change into a ‘Facilitator’ in oil enterprise,… what you actually want is right data and experience [since that is what is going to help] you hook up genuine consumers and sellers. One ought to be within the business for lengthy to have acquired data associated to the dynamics of this enterprise.”

Consequently, one basic approach wherein this general lack of competence or knowledge about the fundamentals of the oil trade manifests itself, is in the shortcoming of the average individual among the string of brokers and agents and intermediaries that function within the commerce, to craft good deals and efficiently shut sales deals even after a number of months or years within the enterprise.

3. BYE And enormous, MOST BROKERS AND Brokers Learn THEIR CRAFT FROM THE Internet, AND THIS HAS SOME Critical DRAWBACKS

There is, for the average contemporary seller’s agent or broker, one other critical shortcoming and destructive consequence that emanates instantly out of the fact that the first source of their training and coaching by which they study the workings of the oil buying and selling business, is basically the Web. Once more, Kamal J. Southall sums up these unfavorable consequences this manner:

“The experience in recognizing a questionable commerce lead or tender request from a robust one, is generally missing through the Internet, [and] there is no important filtering of the leads you end up studying. Anything that may be put on the market, is put on the market, from the genuine to the questionable, to the fraudulent. Furthermore, the character of the “broker network” is such that information is usually passed about with little vital filtering, lack of information of correct buying and selling procedures and the final tendency of knowledge to develop into corrupted because it trades fingers, [and this] leads to harmful outcomes.”

4.Lengthy STRING OF BROKERS, Brokers AND MIDDLEMEN, MOST OF WHOM UNDERCUT One another.

Partly on account of the virtual lack of any goal requirements for qualification as an agent or intermediary in the trade, and the ease of entry into it, these operators usually tend to operate in a local weather of little or no rules or standards, and of loose or no ethics, in which the “dog eat dog” mentality appear to prevail – a climate through which each broker, agent, or mandate, being solely selfishly concerned with simply his own private positive factors and self-interest, is continually trying to undercut and circumvent the other in deals. Thus, usually leading to the final word detriment of All the events concerned in a suggestion, as ALL of them, as a complete, and not only one celebration or the other, invariably wind up the losers since NO deal in any respect is had with any purchaser.

“[One] cause why it is difficult to ascertain the reality [regarding the oil product market],” reported C. Keila Nakasaka, the California attorney and entrepreneur who investigated the industry in 2010 for possible suggestion of the trade to his shoppers, “is that there are a number of brokers concerned in any given transaction; and so they’re all afraid of circumvention. Therefore, it’s virtually inconceivable to know the tip purchaser or seller. Now, I perceive that generally it requires teamwork to place a big transaction collectively, but what bothered me is that just about every one of these brokers did not be forthcoming. They often misrepresented themselves as mandates, direct representatives, and even buyer and sellers.”

THE “JOKER BROKER” CHARACTER

Sure, admittedly, there’s no question that the phenomenon of getting a prolonged string of gamers, including brokers, agents and intermediaries, in a business transaction, is a vital aspect of international enterprise. Much more so, particularly, in at this time’s Internet world by which we are all so interconnected globally. Definitely, in oil sales transactions, it should come as no surprise or something unusual to anyone that such operations, as a result of they typically are inclined to contain huge sums of money and elaborate logistics, would sometimes require teamwork to put the transactions together. And therefore, should sometimes involve a a number of variety of events – traders, agents, intermediaries, brokers, mandates, consumers, distributors, and so on – to conclude a deal. Nonetheless, what’s different here, shouldn’t be a lot the fact that within the Internet crude oil dealings one encounters a string of too many brokers and middlemen. Rather, it is the fact that most of these brokers and middlemen or intermediaries that get entangled in it, usually act and behave within the detrimental manner of what is understood as the so-referred to as “Joker Brokers.”

As Kamal J. Southall put it, “But the expertise of the underground string of international brokers buying and selling meaningless affords and circumventing each other, left and right, illustrates effectively the time period “Joker Broker” and resembles, usually, a Zoo filled with monkeys.”

Adding that “the character, [which is] typically scorned as ‘the Joker Broker,’ is one thing most people encounter in a short time of their forays into the world of trading,” Southall, the writer of a traditional on the “Joker Broker” character, offers a definition and rationalization of the essence of this “Joker Broker” behavior, this fashion:

“Outlined in the primary instance as a bit of a time waster, the joker broker is a person who knowingly or unknowingly peddles and plies offers and products that, in the overwhelming majority of instances, are non-existent, or badly defined. Characterized by a tendency to bluff his approach by way of transactions, the Joker Broker is one… [who goes about] plying deals usually involving a string of brokers from one end of the planet to another, and yet not a single one has verified the very existence of the goods at hand.”

.One vital results of this?

With a multiplicity of brokers and chain of agents usually involved in a trade, and every occasion operating selfishly and undercutting and sabotaging one another in a working environment by which every occasion is untrusting of the opposite in a transaction, and is fearful of being circumvented by the other; most offers which the “secondary” market sellers and their brokers and brokers undertake, are mechanically doomed to failure, even from the very starting. And often do fail.

5. PERVASIVENESS OF “The Joker Broker” MENTALITY Among the many Internet BROKERS, Agents & Other INTERMEDIARES

Nevertheless, probably the most basic and central factor which accounts for why most intermediaries concerned within the “secondary” oil market are usually not able to, and don’t, close any sales deals or earn any revenue or fee as brokers and brokers even after several months or years of peddling their oil product, may merely be condensed into one broad time period: specifically, the highly effective pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom as we speak are merely Internet-primarily based brokers and brokers.

What Is supposed by this?

Put very simply, many brokers and agents, pushed and restricted by the truth that they generally lack a lot training or knowledge in the basics of international buying and selling, and by the actual fact, in as we speak’s Internet era, that their solely “qualification” for assuming the mantle of being a “broker” or “agent” in the oil business, is solely that they’ve an access to the Web and a computer, usually behave of their conduct of the oil promoting operation, in a manner that “resembles, often, a Zoo full of monkeys” – in the words of Kamal J. Southall, the writer of a classic on “‘the Joker Broker” character. A typical characteristic of those brokers and brokers, is that they peddle, knowingly or unknowingly, crude oil deals and merchandise that on the face of it, are in most situations seemingly non-existent or questionable, or a minimum of badly defined, while but appearing as though all is effectively with the product they provide, and that there’s completely nothing for the prospective purchaser to fret about regarding it. They are mostly blinded by greed and false belief that they “are going to be super wealthy subsequent week or next month” by doing nothing, aside from, simply shoving round a couple of copied documents on the internet usually handed all the way down to them from other jokers, none of which any of them has often verified as to the very existence of the products they purport to be promoting.

Aside from the fact that a great lots of them would, whether or not they do it knowingly or not, regularly try to push faux deals on the web, they often act out of many misconceptions and beliefs which are merely not true, normally passed down to them from other jokers. Many times, primarily involved with “making a fast, quick buck,” they’re innocently and naively attempting to close a deal for someone who they consider or merely hope to be real, but who’s, in actual fact really not. However oftentimes, they’re too proud or conceited to simply settle for or concede that their own beliefs and procedures are merely incorrect, refuse to change their ways, and continue to waste their time and others’ time for months and years nonetheless making an attempt to push offers – till, maybe, it finally begins to daybreak on them that for thus long no deals have been closed, or are likely to be closed, and not a dime of revenue has been, or can be, earned!

However above all else, maybe probably the most detrimental factor that outcomes within the lack of enterprise or revenue for most “Web” crude oil brokers and agents, is the fact that, lacking much expertise or real understanding of the true workings of worldwide business or the way in which it truly works, they are sometimes totally unrealistic and impractical in regards to the conditions and necessities they demand of, or expect that, potential buyers would settle for in order to buy the merchandise they purport to have on the market. That is, they typically present gross sales offers and proposals that are so impracticable, unworkable and outrageously unreal, and are totally opposite to the best way normal and reliable enterprise has historically been executed in the true world.

As one analyst put it, “Some of them [the “Web” brokers or joker brokers] are quite entertaining [in the notions about business workings they present], and remind us of the Nigerian rip-off artists. The world simply does not work like that.”

Instance OF JOKER BROKER Provide THAT Can’t WORK

The next is an effective instance of the Joker Broker-type of offer that the oil sellers and their brokers and brokers, most of whom function largely on-line at present, usually demand of intending consumers. It is introduced within the form of the transactions PROCEDURES they demand that the would-be oil purchaser ought to meet and observe, such as these:

TRANSACTIONS PROCEDURES:

1) The Purchaser submits ICPO (Irrevocable Company Buy Order) & banking details
2) Seller issues FCO (Full Company Supply) on his letterhead with full contact particulars.
3) Purchaser returns the FCO duly signed and stamped.
Four) Vendor and purchaser sign contract.
5) Vendor and purchaser alternate the Proof of Product (POP) and Proof of Funds (POF) in the following sequence/order:
6). First: Vendor points POP to the purchaser. Second: After buyer verification and within 7 banking days, purchaser’s financial institution issues POF to vendor’s financial institution.
7) Consumers bank opens non-operative Letter of Credit (L/C) to vendor’s financial institution/or Financial institution Assure (at vendor’s alternative).
Eight) Seller issues 2% Efficiency Bond (PB) to activate L/C.
9) Shipment commences as per the agreed contract.

TO Today’S Buyers, That is WHAT THESE PROCEDURES ARE SAYING TO THEM

In level of truth, actually the procedures such because the above-outlined, are “standard” and may, in Regular and correct circumstances, ordinarily be a workable and acceptable set of phrases and situations or necessities for a credible potential purchaser to do business by. However, here’s what brings about the massive distinction here: there’s one very critical and elementary issue that is grossly missing here. And that is that this: usually, such supply requiring the intending buyer to adjust to these procedures, is made, NOT by or from by a recognized or established and even readily identifiable individual or entity, or necessarily by an Authentic crude seller or supplier. But merely by an Internet “seller.” It is usually introduced by somebody who merely writes (or phones) and claims, normally through some Internet connection or communication (a portal, e-mail or webpage), that he is a crude “seller,” or the broker or agent of one, who supposedly has some oil accessible to promote. And it is typically offered by someone who, invariably, would current virtually no tangible proof or proof by any means establishing his (or her) bona fides and credentials as an genuine vendor, or an intermediary of one, nor reveals any real monitor file of having previously performed within the crude oil selling business, or some other merchandise.

Thus, in effect, what is essentially taking place right here, is that a set of effectively-that means procedures which have legitimately been designed by the industry professionals to be utilized by Legit crude sellers, and have traditionally been used by Reliable and respectable crude sellers and buyers alike to do business, have suddenly been hijacked by a new breed of “Internet” brokers and agents – Joker Brokers – who now demand that prudent crude patrons are to undertake exactly those same procedures in transacting business with them! To put it another means, were these Web brokers and crude “sellers” to have been among the so-called oil Majors – such as Chevron, Valero, Shell Oil, Exxon Cellular, British Petroleum, Whole Oil, and so on. – that means corporations and business entities which are effectively-known, already established, readily recognizable, reputable and reliable, there would have been absolutely no drawback or question about the crude patrons using those “normal” procedures and situations set forth above in doing enterprise with the Internet sellers and brokers. However, that’s not the case all, here. Moderately, quite to the contrary, these Web-kind brokers and brokers (and the purported sellers whose affords they peddle), are largely Internet-based mostly; and are usually obscure operations, and even non-existent, with no recognized id, no recognized base of operations, or established report or history of previous performance as crude sellers.

WHY THE Internet BROKERS’ PROCEDURES LARGELY Do not & Cannot WORK WITH Patrons

Yet, that is, in the vast majority of cases, the kind of supposed crude “sellers” who want and ask that would-be buyers must be submitting to those same procedures and conditions in coping with them. Clearly, that is a ridiculous “Joker Broker” sort of day-dreaming – nearly no credible crude oil purchaser anywhere in the world would settle for to submit an ICPO (Irrevocable Corporate Purchase Order) to a mere unknown, unproven, dubious Internet “vendor” of crude oil to solicit enterprise with such an entity. And positively, no credible crude oil buyer anywhere in the world would accept to submit its Proof of Funds or monetary and banking particulars to such an entity, or to even signal a contract with it – an entity about whom it knows practically nothing, and whose bona fides, credentials or existence as a supposed crude oil provider, is basically dubious and unestablished.

A significant, effectively-recognized, recognizable, or respected entity or crude dealer, yes. But NOT an obscure, dubious, unknown entity, largely current merely on the internet.

Analysts at the JokerBroker.com webpage, which is a site dedicated to extensive compilation of a database of the most notorious “Joker Brokers” individuals and firms, sums it up this manner, describing why most credible crude buyers would typically reject accepting such procedures and circumstances often demanded of them by Internet brokers, outright:

“When a deal starts off with “send ICPO with BCL or Smooth Probe, [POF], NCND and IMFPA,” that is “broker language.” Those who know broker language know what this implies: “I am a joker broker. I have no actual product on the market, and i do not know anybody who has any, so I would like you to give me an Irrevocable Purchase Order together with your full monetary particulars disclosed, so I can run round along with your order and your cash in my arms in search of product, and the subsequent factor you see will be your organization and banking details exposed to the whole world, operating round unsecured on the web between thousands of other joker brokers.”… That’s what this language means. I suggest you learn the language, and please don’t send me even one “deal” which begins off with this process. Please simply put them straight into the rubbish bin, which is exactly where I put them whenever anyone sends them to me.”

Kamal J. Southall, writer of “Trade Fraud, and the Joker Broker,” describes the following as “a few of the most infamous Joker Broker Documents”:

“The Irrevocable Purchase Order/IPO ICPO: Sometimes recognized as the Irrevocable Company Purchase Order, such a document merely does not exist. Or to put things more rudely, the ICPO is crap. There, we have said it, let the chips fall.”

Here is what might most likely be called “the open secret” of the so-referred to as secondary market oil industry: as a group, the crude oil and petroleum products sellers, and their long string of brokers, agents and intermediaries, generally close no offers nor make any gross sales or earnings out of the oil product they purport to promote, steadily after several months, even years, or maybe for ever, of doing the business. There are a number of causes which account for this. They vary from the very fact that most oil sellers and their brokers and different intermediaries, are faux operatives with no crude or petroleum product to promote, in the first, to lack of proper training and knowledge by these operatives in the fundamentals of the enterprise, to the existence of sure severe drawbacks and shortcomings inherent in the fact that, bye and large, the principal source by which most brokers and agents today study their craft at the moment as oil sellers, is merely the Web.

Nevertheless, in all probability the most elementary and most central issue of all which accounts for the above actuality, could merely be condensed into one broad time period: specifically, the highly effective pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom at this time are merely Web-primarily based brokers and brokers. Typically lacking a lot experience or real understanding of worldwide business or the best way it really works, and frequently blinded by greed and false perception that they “are going to be tremendous rich next week or next month” by doing nothing, aside from, maybe, simply shoving round just a few copied documents on the web, the conditions, requirements, and procedures often proposed by the “Internet” brokers and brokers for prospective buyers to purchase from a vendor, are normally unrealistic, impracticable, outrageously unreal, even laughable and ludicrous atimes. They are unworkable conditions and necessities which can be utterly contrary to the best way regular and reliable business has historically been achieved in the real world. And consequently, credible patrons usually reject outright the gross sales gives coming from such Internet sales operatives, thus leading to common lack of gross sales or commission revenue for such operatives, month after month, and even 12 months after 12 months.

Fuel Tankers Stock Photos

For instance, many of the promoting affords one will get as we speak for the sale of oil, are often from Web “sellers” – persons who merely claim, via an Web communication, that they are “sellers” of crude or petroleum products with some product to sell, but usually haven’t any known identification, present no credible record or historical past of past performance as an Genuine crude vendor or supplier, nor current any strong proof that the supposed seller even exists. Yet, these mere “Internet” sellers would typically demand and expect a severe buyer of oil, to easily sign an “ICPO,” and enter into a binding contract with them committing itself to obligations valued in the a number of hundreds of hundreds of thousands of dollars with such a yet unproven and dubious Web “sellers” (or brokers and agents), or to submit its most delicate financial and banking details to them, etc! Calls for which, clearly, just about no credible crude oil buyer wherever on the earth would settle for or undergo with merely a dubious, unknown, yet-to-be-established entity! On high of all that, add to that the reality that those harsh circumstances are being demanded of intending buyers by the sellers and brokers in an oil trade that is, by all credible accounts, stuffed with too many fakes and fraud in the contemporary oil promoting trade!

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