Crude oil buyers often work through procurement managers, refinery purchasing teams, commercial trading desks, and sourcing departments. For suppliers and qualified counterparties, reaching the correct procurement function is an important first step in presenting a crude oil supply opportunity.
The procurement function can differ between organizations.
Depending on the buyer, the relevant commercial contact may sit within:
The correct contact therefore depends on the buyer’s organization and the type of crude oil transaction being proposed.
Procurement managers need to determine whether a supply offer fits their current purchasing requirements.
They may review:
Crude specification
Grade, origin, API gravity, sulfur, assay, and other relevant characteristics.
Volume
Single cargo requirements, recurring monthly supply, or term volumes.
Location
Loading terminal, destination port, refinery, or storage facility.
Commercial terms
Pricing basis, benchmark differential, FOB or CIF structure, and payment conditions.
Timing
Loading window and expected delivery schedule.
Supplier qualification
Company identity, commercial role, supply authority, documentation, and compliance information.
A supplier should approach procurement through a clear business channel and provide a concise commercial summary.
The first communication should answer the basic questions:
What crude is available?
How much is available?
Where is it loading?
When can it load?
What delivery terms are available?
Who is supplying it?
This gives the procurement team enough information to determine whether a detailed discussion is appropriate.
Bulk transactions require greater commercial detail than a general introduction.
For larger crude oil offers, suppliers should be prepared to provide:
The objective is not simply to reach a procurement manager. It is to reach the right procurement function with a credible supply opportunity.
Before discussing a transaction, both buyers and suppliers should establish that the counterparty is legitimate.
Useful checks can include:
This is particularly important where a third party, broker, mandate, or intermediary is involved.
The preferred delivery structure should be stated clearly when contacting a procurement team.
With FOB crude oil supply, the buyer generally takes responsibility for arranging the main transportation from the agreed loading point.
With CIF crude oil supply, freight and insurance are incorporated into the delivery structure to the agreed destination port, subject to the contract.
Stating the preferred delivery basis helps the procurement team assess the proposed transaction more efficiently.
Suppliers and qualified counterparties looking to present a crude oil opportunity should provide the essential commercial information before requesting further discussions.
Include the crude grade, origin, volume, loading location, destination, delivery terms, timing, and company details.
Submit Crude Oil Supply Request →
Use an official corporate procurement, sourcing, trading, or commercial supply channel associated with the buyer.
Provide the crude grade, origin, quantity, loading point, timing, FOB or CIF terms, destination, and company information.
Procurement teams may evaluate bulk offers when the proposed crude and commercial terms fit their purchasing requirements.
The better approach is to identify the appropriate procurement function and submit a relevant, well-structured commercial proposal rather than sending identical messages to unrelated contacts.
Yes. A supplier or qualified counterparty can submit the relevant crude oil supply information through the commercial supply channel for review.
Oil and Gas Procurement: How Buyers Source Crude Oil and Petroleum Products
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