Needless to say, that the crude oil and gas industry is one of the most profitable industries in the world. From the power generation sector to the automobile industry, oil is considered liquid gold in most parts of the world. If you take a look around, you will realize that the countries, which have the highest oil production, have the steadiest economies in the world.
Yes, many people and even experts might say that the days of the oil industry are soon going to be over as more and more research is being conducted on green energy and the ways to harness it. However, it is still, a long time until the worth of oil diminishes in the international market. The demand for crude oil, petrol, and other oil products, is still quite high across the world.
Now, if you are someone, who wants to start trading oil in the international market then you must go with it because it is one of the most profitable businesses in the world. However, starting a business in itself is quite a challenging task to do. Therefore, you will require some help and a lot of guidance for it. In this blog, you will gain some insightful information, which will help you in finding both, crude oil buyers and suppliers to help you successfully start your international crude oil trading business.
Registration on a B2B Website
Everything starts with you registering yourself or your business on a b2b website. Why do you need to create an account on a b2b website? This question must be floating inside your mind. See, b2b websites such as Amazon, Alibaba, or Eworldtrade are virtual platforms. Now, these platforms play the role of a marketplace for buyers and sellers across the globe. Therefore, if you are present on such a virtual platform, then it can help you gain access to millions of buyers and sellers quite easily. Furthermore, using this technology can help you in saving time in not only searching and finding buyers and sellers but in fact, most of these platforms also provide trade assurances, which diminish the risk of fraud or any such kind of malpractices, which can harm your business.
Concentrate on Finding a Seller
Now, there are two ways of making sure that you can sell crude oil in the international market. One way is to have a drilling company, which specializes in extracting crude oil. Now, if you do not have such a company then you will have to opt for the second option, which revolves around finding a trustworthy and steady supplier, who can provide you with high volumes of crude oil, whenever you order it. For this, you will need to, not only, search for and find a supplier or seller of crude oil but in fact, you will have to create a steady and long-term relationship with crude oil suppliers or sellers as well. This will ensure that you have access to large quantities of crude oil and it will increase your selling capacity as well.
Start Searching for Buyers
Once you have access to a supplier of crude oil and you are sure that you are not getting enough quantity of crude oil regularly, you need to start looking for buyers in the market. Now, it really, depends on you whether you want to sell or supply your crude oil in the international market or the local market. With enough supply of crude oil, you can start looking for buyers in both, the international market and the local market. Now, you simply have to use the search option for finding buyers just like you used this option for finding a seller.
Start the Negotiations
Once you have access to all the buyers, you must start contacting as many buyers as you can. You need to start your negotiation process and provide information about your crude oil to your buyers, such as the price and the capacity, which you can deliver per month. Moreover, you also need to provide your buyers with information about how soon you can get the crude oil delivered into their hands as well.
Finalizing the Negotiations
Now, depending on the results of the negotiations, you need to start shortlisting the candidates, who are interested in buying crude oil from you. In this second stage of your negotiations, you must negotiate the price of the crude oil. It is possible that the price negotiations will take a little more time than the previous phase because obviously, it is a sensitive matter to discuss. After all, everyone in this business wants to make a profit just like you. While you are looking for a buyer, who will pay the highest price for your crude oil, the buyers on the other hand are looking for a supplier or seller, who provides them with the lowest price. Therefore, these price negotiations usually take more than one thinks they will. However, once your negotiations are reaching the final stage, you will realize, which buyer you should be selecting.
Create a Contract
Once the negotiations are over, you now have to finalize the terms and conditions and get everything down in black and white.