Trading in crude oil and its derivative products has always been a lucrative business as it is a seller’s market. This means that the market is dominated and dictated by the seller’s lobby rather than buyers. So selling the product is not always the difficult part when it comes to trading crude oil. At the same time getting allocation of the products still remains most tricky part with high entry barriers.
Most of the oil traded in open market is from OPEC (Organization of Oil Producing & Exporting Countries). More specifically the Nigeria National Petroleum Corporation, commonly known as NNPC, sells most of its stocks in the open market. Now the big question is how to get allocation from NNPC? You need to have following in order to stand a chance of getting allocation from this government owned agency:
1. Funds: You must have funds in excess of $ 100 Million and present Proof of these funds (POF) to NNPC.