Buyer Process
How to Negotiate Petroleum Trade Contracts
PetroIntermediation TeamBuyer Process Guides
Negotiation in petroleum is not about haggling on price — it is about controlling five clauses:
- Price formula — Platts mean ± discount beats any fixed number.
- Quality tolerance — typical ±0.5% on density, ±50 ppm sulfur.
- Quantity tolerance — 5% MOLOO clause.
- Demurrage rate — usually $20,000–$45,000/day per WS rate.
- Force majeure scope — narrow it; generic FM clauses are abused.
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