Refined products and crude are sold by refiners, national oil companies and the major trading houses, almost always FOB or CIF with independent inspection and a letter of credit. The online "tank-to-tank" procedures that circulate in broker chains are not how this market works.
Grades and specifications
| Grade | What it is | Price reference |
|---|---|---|
| EN590 diesel (ULSD 10 ppm) | European road diesel standard | Platts / Argus ARA and Mediterranean assessments |
| Gasoil 0.1%, D2 | Heating and industrial gasoil; D2 is a US-style diesel term | Platts gasoil assessments |
| Jet A1 | Aviation kerosene to DEF STAN 91-091 / ASTM D1655 | Platts jet assessments |
| Crude oil | Light, medium, heavy; sweet or sour | Brent, WTI, Dubai/Oman, Murban plus differential |
| Fuel oil (D6, HSFO, VLSFO) | Residual fuels for bunkers and power | Singapore and Rotterdam assessments |
EN590 diesel: parameters commonly specified
| Parameter | Typical limit |
|---|---|
| Sulphur | max 10 mg/kg |
| Cetane number | min 51 |
| Density at 15°C | 820–845 kg/m³ |
| Flash point | above 55°C |
| Polycyclic aromatics | max 8% (m/m) |
| Cold filter plugging point | Seasonal grade to contract |
Specifications vary by origin, buyer and contract. The contract specification, not a generic sheet, is what the inspector tests against.
Typical contract terms
- Incoterms: FOB refinery or terminal, CIF destination
- Lot sizes: Cargoes of 30,000–100,000 MT; ARA barges of a few thousand tonnes
- Pricing: Platts or Argus average over a pricing period around the bill of lading date, plus or minus a premium
- Payment: Documentary LC at sight, or open account with a parent guarantee for term buyers
- Inspection: SGS, Intertek or similar for quality and quantity at loading
Documents
Seller provides
- Refinery or terminal identity and title to the product
- Certificate of quality and certificate of quantity from the independent inspector
- Certificate of origin
- Bill of lading or, for in-tank transfers, a terminal-issued transfer confirmation
- Safety data sheet
- Invoice and insurance under CIF
Buyer provides
- Import licence and storage or terminal capacity at destination
- Letter of intent with grade, quantity, port and laycan
- Bank details for bank-to-bank verification
- Vessel nomination details where buying FOB
Procedure
- Enquiry and specificationBuyerProduct, grade, quantity, packing, destination, delivery window, Incoterm and payment method, on company letterhead.
- KYC in both directionsBuyerSellerRegistry extracts, ownership, licences and bank details are exchanged and verified. See Documents Checklist.
- Offer and negotiationSellerA firm offer with price basis, validity, quantity tolerance, inspection and payment terms.
- ContractBuyerSellerA sales and purchase agreement on recognised contract terms, with law and arbitration named.
- Payment securityBanksDocumentary letter of credit at sight, confirmed where needed, or another instrument agreed in draft before issue.
- Inspection and loadingSellerIndependent inspector tests the shore tank and ship's tanks before loading and issues quality and quantity certificates.
- Documents and paymentBanksInvoice, bill of lading, certificates of quality, quantity and origin, and insurance under CIF, presented under the LC.
Price reference
| Benchmark or range | Level | Basis |
|---|---|---|
| Brent crude | $87.08/bbl | ICE, 14 Aug 2026 |
| EN590 / ULSD | ~$1,200–1,300/MT | Europe / ARA, 14 Aug 2026 |
| Jet A1 global | $146.93/bbl | IATA/S&P refinery average, 14 Aug 2026 |
| Fuel oil VLSFO | ~$600–700/MT | Singapore / Rotterdam, 14 Aug 2026 |
Physical deals add a premium or discount to the assessment, plus freight and insurance. Latest levels are in the Weekly Market Monitor.
Check before you trade
- "Tank-to-tank", "TTO" or "dip test" procedures in which the buyer pays to inspect or reserve a tank
- EN590 offered at deep discounts to Platts in fixed monthly volumes for 12 months
- Sellers who cannot name the refinery or terminal or show a verifiable tank receipt
- Russian-origin products into the EU or UK, which are banned; other sanctions and the price cap apply elsewhere
TradeScout24 Trade Desk · Sources: EN 590; DEF STAN 91-091; TradeScout24 Weekly Market Monitor, 14 Aug 2026 · General information, not an offer or legal advice · Last reviewed 31 Oct 2026