Unlocking Unlimited Supply of ESPO Crude Oil: Your Guide to FOB and CIF Transactions

The global demand for crude oil remains high, and securing a reliable supply at competitive prices is a priority for many businesses. ESPO crude oil, originating from North America, offers an unlimited supply with flexible delivery and payment options. Understanding the terms FOB and CIF and the transaction procedures involved can help buyers make informed decisions and optimize their procurement process.

What Is ESPO Crude Oil and Why It Matters

ESPO (East Siberian Pacific Ocean) crude oil is a high-quality fuel source produced in North America and supplied through multiple international ports. It is known for its consistent quality and competitive pricing, making it attractive for buyers worldwide. The supply is unlimited, with a liftable quantity of 2,000,000 barrels and a maximum monthly quantity of 5,000,000 barrels, ensuring steady availability.

The pricing is straightforward: FOB and CIF prices are both set at $60 per barrel, with a $2.00 commission on the buyer’s side. This transparent pricing helps buyers plan their budgets accurately without hidden costs.

Understanding FOB and CIF Delivery Terms

When purchasing crude oil, delivery terms define the responsibilities and risks shared between the seller and buyer. Two common terms are FOB (Free on Board) and CIF (Cost, Insurance, and Freight).

• FOB (Free on Board) means the seller delivers the oil onto the vessel at the loading port. The buyer assumes responsibility for the shipment once it is on board, including freight and insurance costs.

• CIF (Cost, Insurance, and Freight) means the seller covers the cost of freight and insurance until the oil reaches the buyer’s designated port. The buyer takes ownership after arrival.

  
  

Both terms are available for ESPO crude oil transactions, allowing buyers to choose the option that best fits their logistics and risk preferences.

Available Loading Ports and Transaction Procedures

ESPO crude oil can be loaded from several major ports, including Houston, Rotterdam, Jurong, and Fujairah. These ports support different transaction procedures to accommodate buyer needs:

• Tank-to-Tank (TTT) Procedure: This method involves transferring crude oil directly from the seller’s storage tanks to the buyer’s tanks at the designated port. It is available for all listed ports.

• Vessel-to-Tank (VTT) Procedure: This involves unloading crude oil from the vessel directly into the buyer’s tanks at the port.

• FOB Tank-to-Vessel (TTV) / Tank-to-Tank (TTT) Procedure: Applicable at Rotterdam, Fujairah, Singapore, China, and Houston, this procedure allows flexible handling depending on buyer preferences.

  
  

These procedures ensure smooth and secure transfers, minimizing delays and risks during shipment.

Inspection and Insurance for Secure Transactions

Before loading, all shipments undergo SGS-certified inspection. SGS is a trusted global inspection company that verifies the quality and quantity of the crude oil. This certification gives buyers confidence that the product meets agreed standards.

The seller also insures 100% of the shipment value, providing full coverage against loss or damage during transit. This insurance protects buyers from financial risks and ensures peace of mind throughout the delivery process.

Payment Methods and Transaction Types

ESPO crude oil transactions accept several secure payment methods:

• T/T Wire Transfer

• MT103 (a bank payment confirmation)

• SBLC (Standby Letter of Credit)

• DLC (Documentary Letter of Credit)

  
  

Buyers can engage in spot transactions for immediate delivery or enter contract agreements for ongoing supply under FOB or CIF terms. This flexibility allows businesses to tailor purchases to their operational needs and market conditions.

Why Choose ESPO Crude Oil for Your Supply Needs

Several factors make ESPO crude oil a strong choice for buyers:

• Unlimited supply ensures no shortage even during peak demand.

• Competitive pricing at $60 per barrel with transparent commissions.

• Multiple loading ports provide logistical convenience.

• Certified inspection and full insurance guarantee product quality and shipment security.

• Flexible payment and transaction options accommodate different buyer preferences.

• Direct deals with 30 refineries ensure a reliable fuel source all year round.

  
  

This combination of benefits helps buyers maintain a steady fuel supply while managing costs and risks effectively.

Practical Example of a Transaction

Imagine a refinery in Europe needing 1,000,000 barrels of crude oil monthly. They opt for CIF delivery to Rotterdam. The seller arranges shipment from Houston, insures the cargo, and ensures SGS inspection before loading. The refinery pays via SBLC under a contract agreement. Upon arrival, the refinery receives the crude oil directly into their tanks using the Tank-to-Tank procedure. This process minimizes handling, reduces costs, and guarantees timely delivery.

Final Thoughts on ESPO Crude Oil Transactions

ESPO crude oil offers a reliable, cost-effective fuel source with flexible delivery and payment options. Understanding FOB and CIF terms, inspection protocols, and transaction procedures helps buyers secure their supply confidently. Whether for spot purchases or long-term contracts, ESPO crude oil meets the demands of today’s energy market with transparency and security.