Trade Terms
Performance Bond and Bank Guarantee in Oil Deals
PetroIntermediation TeamTrade Terms
A Performance Bond (typically 2% of contract value) is issued by the seller's bank as security against non-performance. It is reciprocal to the buyer's payment instrument.
Scam pattern: seller demands buyer "fund" the PB issuance. Real PBs are issued against the seller's own credit line — never against buyer cash.
Ready to run a verified petroleum deal?
Sign up at PetroIntermediation to post your RFQ and reach KYC-verified suppliers. Yearly subscribers can list unlimited deals on PetroMarketplace — the convenient way to put your tender in front of pre-qualified counterparties.
