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    Trade Terms

    Spot vs Term Contracts in Crude Oil Trading

    PetroIntermediation TeamTrade Terms
    Spot vs Term Contracts in Crude Oil Trading

    Spot: single-cargo deal at current market price. Best for opportunistic buyers.

    Term: 6 to 12 months at Platts ± discount. Required for refiners and utilities.

    Term contracts demand stronger creditworthiness and proven offtake. Spot contracts demand faster execution.

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