Most Crude Oil And Petroleum Product Sellers, Brokers and Agents, in the International “Secondary” Oil Market, Don’t Make Any Sales Or Revenue. Do You Ever Marvel Why?
A significant “HIDDEN SECRET” OF OIL SELLERS & BROKERS: MOST Do not MAKE ANY Gross sales or Revenue
Crude oil and petroleum products sellers, and their brokers and brokers, who function within the so-known as “secondary market” of the worldwide oil market immediately, do not usually talk about this, or like to do so. Or like the actual fact about this to be identified. In deed, many of them would slightly that it’s saved obscured, or simply misrepresented. But, the fact is that one distinctive a part of their enterprise “reality” is that this: as a gaggle, they ceaselessly close no offers nor make any sales for the oil product they purport to have out there to sell, and, in actual fact, the overwhelming majority of them often go for months, even years, or maybe for ever, with out ever landing even a single sales contract or deal. It is probably what might simply be called “the open secret” of the oil selling industry!
C. Keila Nakasaka, a California lawyer and actual property investor and entrepreneur, who conducted in depth market analysis and investigations into the D2 diesel oil trade to see if he could prudently advocate taking on the fee broker’s job to his clients, says he came away from his analysis drastically disillusioned and disenchanted. In response to him, the “stories that these brokers concoct are that the seller has some direct reference to a refinery. Some even claim that the vendor is, in truth, one of the main energy companies in Russia… [however] what bothered me [probably the most] is that just about every one of these brokers did not be forthcoming. They typically misrepresented themselves as mandates, direct representatives, and even buyer and sellers.”
In all probability the principal and most sensitive thing about which most such sellers and intermediaries (the agents, facilitators, mandates, brokers, and so on.) are least “forthcoming” and “misrepresenting” about, is concerning the quantity and quantity of sales deals they’ve ever closed, if any, or the revenue they have earned in the trade, if any. Merely put, almost all of these operatives usually shut no deals, and earn almost nothing. Most of them go for months, even years – or forever – with out efficiently closing any gross sales deals, not to speak of incomes even a dime in fee earnings!
As Nakasaka put it, describing his findings: “One other issue which I thought was odd was that a lot of the brokers I spoke with by no means closed a D2 deal despite their months and generally years on this enterprise. There was one broker who claimed that he had pending offers, and two who acknowledged that they did the truth is shut these offers. Nonetheless, I did not discover them credible.”
Main Reasons FOR THIS, WHICH ACCOUNT FOR WHY MOST “SECONDARY MARKET” SELLERS & THEIR INTERMEDIARIES By no means Close ANY Deals
Why is that this so – that they make no sales or earnings? Many factors account for it. They could roughly be summed up as follows:
1. MOST SELLERS (and their intermediaries) ARE Faux, ANY Method, WITH NO CRUDE OR OIL PRODUCT TO Sell
A truth that is by now effectively-established and not topic to any disputation whatsoever amongst credible consultants within the industry, is that the overwhelming majority of promoting affords peddled by crude oil and petroleum product “sellers” within the so-known as “secondary” oil markets, and their brokers, brokers, and different intermediaries, are pretend and bogus. In deed, some objective studies and analysis have put its extent at a whopping level of some ninety nine.999999 percent of all offers offered on the market. In all probability the only thing of much redeeming value that may very well be stated about this, is that with specific respect to those who act as foreign brokers and intermediaries in the enterprise, some of them might usually be engaged fraudulently within the enterprise however innocently and unwittingly, mistakenly believing that the deal or selling operation is genuine and respectable, when it really isn’t.
2.LACK OF Correct Training, Abilities OR Data IN The basics OF THE Business
Put very simply, perhaps nowhere is the saying that “we reside in a wide interconnected world” more relevant at this time than on the planet of the international buying and promoting of crude oil and petroleum products. For probably the most half, nearly all that one needs to be able to become a “vendor” of crude oil or petroleum product, or his agent, reliable or not, who’re working out of any part of the world, is simply to have an access to a computer and an Internet connection. That’s just about all! Sadly, however, one dire negative impact of this so-known as “revolution of the Web” (among many others), has been that many who now declare to be, or operate as, “sellers” or the sellers’ “brokers” or “brokers,” are largely uneducated or semi-illiterate, untrained and unskilled, and are missing in any data of the correct fundamentals of worldwide oil buying and selling.
Kamal J. Southall, one of many foremost experts on the topic, whose ebook, “Trade Fraud, Financial Fraud, and the Joker Broker,” is probably the most authoritative texts on the phenomenon, puts it this way:
“Have you seen that as you’ve searched Google and libraries, and looked excessive and low, finding bits of data here and there, you encounter attention-grabbing phenomena: very little sensible data on the artwork and science of dealing in Worldwide trade as an independent trader exists in any comprehensive means. Certain practices, paperwork, and procedures; mysterious acronyms corresponding to “NCND” or “MPA,” are thrown again and forth, badly corrupted model paperwork and varieties might filter your way, however the truth is that the majority tried dwelling primarily based traders, brokers – or, extra correctly, intermediaries – be taught by means of extremely costly ‘trial and error,’… usually re-inventing the wheel each time, in that ever-elusive search for a deal and knowledge on how to close that deal.”
Southall estimates, citing another knowledgeable’s calculation, that out of some one million individuals at present making an attempt to make it as brokers or trade intermediaries on this planet, “maybe not more than 1% has the coaching and skill needed to ever close a deal… [that means that] the overwhelming majority, are buying and selling blindly, [therefore] offers are collapsing… and more to the purpose, [oil dealers are] being defrauded – typically massive..”
Mr. R. Ambardar, a broker of over 10 years of extensive expertise in worldwide market growth and advisory services, calls “lack of expertise and data” one of the principal the explanation why many brokers and facilitators fail in crude oil endeavors. “Many individuals are attracted into this business due to [the tales they hear in regards to the] variety of cash one can earn on account of profitable offers. Many agents fail, [however], to understand that requirements to succeed in this business are very demanding, [and that] Solely these who have years of arms-on expertise and thorough knowledge of the trade can strive to do properly as center-men.”
A great many variety of brokers, Ambardar provides, forget that “To develop into a ‘Facilitator’ in oil business,… what you actually want is correct data and expertise [since this is what is going to help] you hook up genuine patrons and sellers. One ought to be within the trade for long to have acquired information associated to the dynamics of this enterprise.”
Consequently, one basic means wherein this general lack of competence or data about the basics of the oil trade manifests itself, is in the lack of the average individual among the many string of brokers and agents and intermediaries that function within the commerce, to craft good deals and efficiently close gross sales deals even after a number of months or years in the business.
3. BYE And large, MOST BROKERS AND Agents Study THEIR CRAFT FROM THE Web, AND THIS HAS SOME Critical DRAWBACKS
There may be, for the common contemporary seller’s agent or broker, one other critical shortcoming and damaging consequence that emanates straight out of the fact that the primary supply of their schooling and training by which they be taught the workings of the oil buying and selling business, is actually the Internet. Again, Kamal J. Southall sums up these adverse penalties this way:
“The expertise in recognizing a questionable commerce lead or tender request from a strong one, is generally missing through the Web, [and] there is no essential filtering of the leads you end up studying. Anything that may be put on the market, is put out there, from the real to the questionable, to the fraudulent. Furthermore, the nature of the “broker community” is such that data is usually handed about with little essential filtering, lack of information of proper trading procedures and the overall tendency of data to develop into corrupted as it trades arms, [and this] results in dangerous outcomes.”
4.Long STRING OF BROKERS, Brokers AND MIDDLEMEN, MOST OF WHOM UNDERCUT One another.
Partly because of the digital lack of any objective requirements for qualification as an agent or middleman in the trade, and the ease of entry into it, these operators typically are likely to perform in a climate of little or no guidelines or standards, and of free or no ethics, during which the “canine eat dog” mentality appear to prevail – a local weather through which every broker, agent, or mandate, being solely selfishly concerned with just his own private gains and self-interest, is consistently trying to undercut and circumvent the opposite in offers. Thus, usually leading to the last word detriment of All of the parties concerned in a proposal, as ALL of them, as an entire, and never just one celebration or the other, invariably wind up the losers since NO deal in any respect is had with any purchaser.
“[One] cause why it’s difficult to ascertain the truth [concerning the oil product market],” reported C. Keila Nakasaka, the California lawyer and entrepreneur who investigated the industry in 2010 for doable suggestion of the commerce to his shoppers, “is that there are multiple brokers involved in any given transaction; and they’re all afraid of circumvention. Hence, it’s almost inconceivable to know the tip purchaser or vendor. Now, I perceive that typically it requires teamwork to place a large transaction collectively, however what bothered me is that just about every one of these brokers did not be forthcoming. They typically misrepresented themselves as mandates, direct representatives, and even buyer and sellers.”
THE “JOKER BROKER” CHARACTER
Certain, admittedly, there is no question that the phenomenon of getting a lengthy string of gamers, including brokers, brokers and intermediaries, in a business transaction, is a needed facet of worldwide business. Much more so, particularly, in at the moment’s Internet world in which we are all so interconnected globally. Certainly, in oil sales transactions, it should come as no shock or anything unusual to anybody that such operations, because they typically tend to involve enormous sums of money and elaborate logistics, would generally require teamwork to place the transactions collectively. And hence, should sometimes involve a a number of number of events – traders, brokers, intermediaries, brokers, mandates, buyers, distributors, and so forth – to conclude a deal. Nevertheless, what’s totally different here, isn’t so much the fact that within the Web crude oil dealings one encounters a string of too many brokers and middlemen. Fairly, it’s the fact that almost all of those brokers and middlemen or intermediaries that become involved in it, usually act and behave within the detrimental method of what is thought as the so-called “Joker Brokers.”
As Kamal J. Southall put it, “But the expertise of the underground string of international brokers buying and selling meaningless offers and circumventing one another, left and right, illustrates properly the term “Joker Broker” and resembles, often, a Zoo filled with monkeys.”
Including that “the character, [which is] typically scorned as ‘the Joker Broker,’ is one thing most people encounter very quickly of their forays into the world of buying and selling,” Southall, the creator of a classic on the “Joker Broker” character, provides a definition and explanation of the essence of this “Joker Broker” conduct, this manner:
“Defined in the first instance as a bit of a time waster, the joker broker is a person who knowingly or unknowingly peddles and plies deals and merchandise that, within the vast majority of situations, are non-existent, or badly outlined. Characterized by a tendency to bluff his way through transactions, the Joker Broker is one… [who goes about] plying offers often involving a string of brokers from one finish of the planet to another, and but not a single one has verified the very existence of the goods at hand.”
.One important result of this?
With a multiplicity of brokers and chain of brokers typically involved in a commerce, and each party operating selfishly and undercutting and sabotaging each other in a working environment by which every celebration is untrusting of the opposite in a transaction, and is petrified of being circumvented by the opposite; most offers which the “secondary” market sellers and their brokers and agents undertake, are automatically doomed to failure, even from the very beginning. And often do fail.
5. PERVASIVENESS OF “The Joker Broker” MENTALITY Among the Web BROKERS, Agents & Different INTERMEDIARES
Nonetheless, most likely essentially the most basic and central factor which accounts for why most intermediaries involved within the “secondary” oil market are usually not in a position to, and do not, close any gross sales deals or earn any income or commission as brokers and agents even after several months or years of peddling their oil product, may merely be condensed into one broad time period: specifically, the powerful pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom in the present day are merely Web-primarily based brokers and agents.
What Is supposed by this?
Put very merely, many brokers and agents, driven and restricted by the truth that they typically lack a lot coaching or knowledge in the basics of worldwide trading, and by the very fact, in at the moment’s Internet period, that their solely “qualification” for assuming the mantle of being a “broker” or “agent” in the oil enterprise, is just that they have an access to the Internet and a pc, typically behave in their conduct of the oil selling operation, in a way that “resembles, often, a Zoo filled with monkeys” – in the phrases of Kamal J. Southall, the creator of a classic on “‘the Joker Broker” character. A standard characteristic of these brokers and agents, is that they peddle, knowingly or unknowingly, crude oil offers and products that on the face of it, are in most instances seemingly non-existent or questionable, or a minimum of badly defined, while but appearing as if all is nicely with the product they offer, and that there is absolutely nothing for the prospective buyer to fret about regarding it. They are largely blinded by greed and false perception that they “are going to be super rich next week or subsequent month” by doing nothing, apart from, simply shoving around a few copied documents on the web normally handed all the way down to them from other jokers, none of which any of them has usually verified as to the very existence of the products they purport to be promoting.
Other than the fact that a good lots of them would, whether or not they do it knowingly or not, steadily attempt to push fake deals on the internet, they often act out of many misconceptions and beliefs that are simply not true, often passed all the way down to them from different jokers. Many occasions, mainly concerned with “making a fast, quick buck,” they’re innocently and naively trying to shut a deal for someone who they imagine or merely hope to be actual, however who’s, in actual fact actually not. But oftentimes, they’re too proud or conceited to easily settle for or concede that their very own beliefs and procedures are simply incorrect, refuse to alter their ways, and continue to waste their time and others’ time for months and years nonetheless making an attempt to push offers – till, maybe, it lastly begins to daybreak on them that for thus long no deals have been closed, or are likely to be closed, and not a dime of income has been, or can be, earned!
But above all else, maybe the most detrimental factor that outcomes in the lack of business or income for many “Internet” crude oil brokers and brokers, is the truth that, missing much expertise or actual understanding of the true workings of international business or the way in which it really works, they are sometimes completely unrealistic and impractical about the situations and necessities they demand of, or count on that, prospective consumers would settle for in order to buy the merchandise they purport to have for sale. That is, they typically present sales offers and proposals which might be so impracticable, unworkable and outrageously unreal, and are totally opposite to the way regular and reliable enterprise has historically been carried out in the actual world.
As one analyst put it, “A few of them [the “Web” brokers or joker brokers] are fairly entertaining [in the notions about business workings they current], and remind us of the Nigerian scam artists. The world simply doesn’t work like that.”
Instance OF JOKER BROKER Supply THAT Can’t WORK
The next is an efficient example of the Joker Broker-type of supply that the oil sellers and their brokers and agents, most of whom function principally on-line at present, sometimes demand of intending patrons. It’s offered in the form of the transactions PROCEDURES they demand that the would-be oil buyer should meet and observe, equivalent to these:
TRANSACTIONS PROCEDURES:
1) The Purchaser submits ICPO (Irrevocable Corporate Buy Order) & banking particulars
2) Vendor points FCO (Full Company Offer) on his letterhead with full contact details.
3) Buyer returns the FCO duly signed and stamped.
Four) Seller and purchaser sign contract.
5) Vendor and buyer trade the Proof of Product (POP) and Proof of Funds (POF) in the next sequence/order:
6). First: Seller points POP to the purchaser. Second: After purchaser verification and inside 7 banking days, buyer’s financial institution issues POF to seller’s financial institution.
7) Buyers financial institution opens non-operative Letter of Credit score (L/C) to seller’s bank/or Bank Guarantee (at seller’s alternative).
8) Vendor issues 2% Performance Bond (PB) to activate L/C.
9) Shipment commences as per the agreed contract.
TO At the moment’S Patrons, That is WHAT THESE PROCEDURES ARE SAYING TO THEM
In point of fact, truly the procedures such as the above-outlined, are “normal” and will, in Normal and proper circumstances, ordinarily be a workable and acceptable set of phrases and circumstances or requirements for a credible potential purchaser to do enterprise by. Nonetheless, this is what brings about the large distinction right here: there is one very serious and elementary issue that is grossly missing here. And that is that this: sometimes, such provide requiring the intending buyer to comply with these procedures, is made, NOT by or from by a recognized or established and even readily identifiable individual or entity, or necessarily by an Genuine crude vendor or provider. But merely by an Internet “seller.” It is typically presented by somebody who merely writes (or phones) and claims, usually through some Internet connection or communication (a portal, electronic mail or website), that he’s a crude “vendor,” or the broker or agent of one, who supposedly has some oil obtainable to promote. And it is often presented by someone who, invariably, would current nearly no tangible proof or proof in any respect establishing his (or her) bona fides and credentials as an authentic seller, or an intermediary of 1, nor reveals any actual monitor file of getting previously carried out in the crude oil selling enterprise, or every other merchandise.
Thus, in effect, what is basically occurring right here, is that a set of properly-meaning procedures which have legitimately been designed by the business professionals to be used by Authentic crude sellers, and have traditionally been used by Reliable and respectable crude sellers and patrons alike to do business, have suddenly been hijacked by a new breed of “Web” brokers and brokers – Joker Brokers – who now demand that prudent crude patrons are to adopt precisely those same procedures in transacting business with them! To place it another method, have been these Internet brokers and crude “sellers” to have been some of the so-referred to as oil Majors – corresponding to Chevron, Valero, Shell Oil, Exxon Mobile, British Petroleum, Total Oil, and so on. – meaning corporations and business entities which might be nicely-recognized, already established, readily recognizable, reputable and trustworthy, there would have been completely no drawback or question concerning the crude buyers using those “standard” procedures and situations set forth above in doing business with the Web sellers and brokers. Nonetheless, that isn’t the case all, here. Fairly, quite to the opposite, these Web-sort brokers and agents (and the purported sellers whose gives they peddle), are largely Web-based mostly; and are generally obscure operations, or even non-existent, with no identified id, no recognized base of operations, or established record or historical past of past efficiency as crude sellers.
WHY THE Web BROKERS’ PROCEDURES LARGELY Don’t & Can’t WORK WITH Buyers
But, that is, within the overwhelming majority of cases, the form of supposed crude “sellers” who want and ask that would-be consumers needs to be submitting to those self same procedures and conditions in dealing with them. ly, that’s a ridiculous “Joker Broker” sort of day-dreaming – just about no credible crude oil buyer wherever on this planet would accept to submit an ICPO (Irrevocable Corporate Purchase Order) to a mere unknown, unproven, dubious Web “seller” of crude oil to solicit business with such an entity. And positively, no credible crude oil buyer wherever on the earth would accept to submit its Proof of Funds or monetary and banking details to such an entity, or to even signal a contract with it – an entity about whom it is aware of practically nothing, and whose bona fides, credentials or existence as a supposed crude oil supplier, is essentially dubious and unestablished.
A major, well-identified, recognizable, or respected entity or crude seller, sure. But NOT an obscure, dubious, unknown entity, largely present merely on the web.
Analysts on the JokerBroker.com web site, which is a site dedicated to intensive compilation of a database of probably the most infamous “Joker Brokers” individuals and companies, sums it up this way, describing why most credible crude patrons would generally reject accepting such procedures and circumstances typically demanded of them by Internet brokers, outright:
“When a deal begins off with “send ICPO with BCL or Gentle Probe, [POF], NCND and IMFPA,” that is “broker language.” Those who know broker language know what this means: “I am a joker broker. I don’t have any real product on the market, and i don’t know anyone who has any, so I need you to provide me an Irrevocable Buy Order along with your full monetary particulars disclosed, so I can run round along with your order and your money in my fingers searching for product, and the following thing you see will probably be your organization and banking details exposed to the whole world, running around unsecured on the web between thousands of other joker brokers.”… That’s what this language means. I counsel you study the language, and please do not ship me even one “deal” which starts off with this procedure. Please just put them straight into the rubbish bin, which is precisely the place I put them at any time when anybody sends them to me.”
Kamal J. Southall, writer of “Commerce Fraud, and the Joker Broker,” describes the following as “some of essentially the most notorious Joker Broker Paperwork”:
“The Irrevocable Purchase Order/IPO ICPO: Generally known as the Irrevocable Company Buy Order, such a document merely doesn’t exist. Or to put things more rudely, the ICPO is crap. There, we’ve got mentioned it, let the chips fall.”
Here is what may probably be known as “the open secret” of the so-referred to as secondary market oil trade: as a group, the crude oil and petroleum products sellers, and their long string of brokers, brokers and intermediaries, generally shut no offers nor make any sales or earnings out of the oil product they purport to promote, continuously after several months, even years, or maybe for ever, of doing the business. There are several causes which account for this. They vary from the very fact that most oil sellers and their brokers and different intermediaries, are pretend operatives with no crude or petroleum product to sell, in the primary, to lack of proper coaching and information by these operatives in the basics of the enterprise, to the existence of sure critical drawbacks and shortcomings inherent in the fact that, bye and huge, the principal source by which most brokers and brokers at the moment be taught their craft at this time as oil sellers, is merely the Internet.
However, most likely the most basic and most central factor of all which accounts for the above reality, may merely be condensed into one broad term: namely, the powerful pervasive grip that the “The Joker Broker” mentality has come to have on the brokers and agents, most of whom in the present day are merely Internet-based brokers and brokers. Usually lacking a lot expertise or real understanding of international enterprise or the way in which it actually works, and incessantly blinded by greed and false perception that they “are going to be tremendous rich next week or next month” by doing nothing, apart from, perhaps, merely shoving round a number of copied paperwork on the web, the conditions, requirements, and procedures usually proposed by the “Web” brokers and agents for prospective patrons to purchase from a vendor, are usually unrealistic, impracticable, outrageously unreal, even laughable and ludicrous atimes. They are unworkable conditions and requirements which might be utterly opposite to the way regular and professional enterprise has traditionally been finished in the real world. And consequently, credible buyers typically reject outright the gross sales gives coming from such Web sales operatives, thus leading to widespread lack of sales or fee revenue for such operatives, month after month, and even yr after year.
For example, a lot of the selling affords one will get right now for the sale of oil, are normally from Web “sellers” – individuals who merely claim, by way of an Web communication, that they’re “sellers” of crude or petroleum products with some product to sell, but usually have no identified id, present no credible document or history of past performance as an Authentic crude vendor or provider, nor current any stable proof that the supposed vendor even exists. Yet, these mere “Internet” sellers would usually demand and expect a severe buyer of oil, to easily signal an “ICPO,” and enter right into a binding contract with them committing itself to obligations valued within the a number of lots of of tens of millions of dollars with such a yet unproven and dubious Web “sellers” (or brokers and agents), or to submit its most sensitive financial and banking particulars to them, and so on! Demands which, ly, virtually no credible crude oil buyer anyplace on the planet would accept or undergo with merely a dubious, unknown, yet-to-be-established entity! On top of all that, add to that the truth that these harsh circumstances are being demanded of intending buyers by the sellers and brokers in an oil trade that’s, by all credible accounts, stuffed with too many fakes and fraud in the contemporary oil selling industry!
