FECOEX CRUDE OIL and REFINED FUELS

FECO EXPORTING actively trades in a range of crude oil and refined fuels, as detailed below. We consider all high-quality, export-ready products.

Crude Oil

FECO EXPORTING is interested in crude oil purchases under our established terms and conditions. We require long-term supply assurance and a clear price basis before offering these goods to our clients. We consider any sweet grade of crude oil with assured supply for one year or more, supporting a monthly delivery regime.

All crude oil and fuel offers must adhere to an FOB Incoterms delivery protocol. Once an offer is accepted, a CIF aspect will be finalized in the contract. We typically consider supply contracts of 80,000 MT or more, up to 140,000 MT, for a minimum of one year.

ULSD (Ultra-Low Sulfur Diesel)

Similar to crude oil, we seek refined fuels, especially ULSD2 with a Cetane content of 45 or higher (50 preferred).

• Quantity: We consider lots of 3 to 5 MMT (Million Metric Tons) for contracts ranging from 3 to 5 years.

• Specifications:

  • ULSD with 10 PPM sulfur content and a Cetane number of 50 or more.

  • Alternatively, ULSD with a Cetane number under 46.

Jet Fuel A1

Jet Fuel A1 (Defstan Grade Jet A1) is also considered for yearly lots.

Urea

• Specification: 46% Nitrogen

FECOEX Contractual Framework: Crude Oil & Refined Fuels

FECO EXPORTING's procurement of crude oil and refined fuels is structured under a semi-fixed contract basis, employing ICC FOB or CIF delivery terms. 

The foundation of this semi-fixed basis is a designated, reliable benchmark, from which the FECO EXPORTING index buying price for suppliers is derived. 

Advice and Insights for Global Suppliers

Crude Oil Pricing & Indexing:

• Brent and WTI prices are tracked using a reliable spot exchange listing, specifically defined as the Bloomberg Index.

• These Brent and WTI prices are tracked and averaged to establish the FOB delivery mode price basis, which forms the FECO EXPORTING Index Buying Price (FIBP). All prices are formulated to the nearest whole cent.

Contractual Dynamics:

• Once a live deal is established, the contractual terms remain applicable to the supplier. FECO EXPORTING's internal board tracks and updates these terms as tolerance factors are breached.

• For active deals, the FECO EXPORTING average Index price is calculated, tracked, and applied by both the supplier and FECO EXPORTING (as the buyer) on the 15th day of every month, based on prices taken before 12:01 PM AEST.

Supply Assurance & Pricing:

• Once supply assurance is provided to FECO EXPORTING, the payable price basis is applied as per the advice above, specifically at ICC FOB Incoterms.

• If a purchase leads to a signed contract within 37 days of supply assurance being served, the FECO EXPORTING Index 30-day buy price will be the payable price to the supplier.

• Upon confirmation of a signed contract, the price basis for the first delivery will be determined on the 15th day of the month.

• Deliveries commence monthly, within 30 days of the contract being signed, or as otherwise stipulated in the agreement.

Pricing Factors (Crude Oil):

• A general factor of 7.5 BBL to MT is used to determine the Metric Ton FOB price basis. However, the supplier's actual BBL/MT factor will apply if indicated in the offer.

• Offers are specifically for Sweet Crude Oil with a sulfur content of less than 0.5%. The "sweet factor" is the primary assessment criterion. We seek an API aspect ranging from 30 up to 40 API.

• The offered price basis is for ICC FOB Incoterms delivery rules as current. Actual delivery may be at FOB or CIF Incoterms, calculated after the FOB price has been accepted.

Communication & Confidentiality:

• Once an offer is advised, email communication between FECO EXPORTING and the supplier remains open. All business conducted with FECO EXPORTING is strictly confidential. FECO EXPORTING is always the buyer in these transactions.

Purchase Procedures:

• Our purchase procedures typically follow these steps: Offers, Acceptance, Rejection (an OTP (Offer to Purchase) is served if accepted), DLC (Documentary Letter of Credit) Issuance, P.G. (Performance Guarantee), Contract signing, and the first delivery taking place 30 days after the contract is signed.

• Transport documents are presented cleanly at sight. Collections of the DLC then take place. Physical delivery occurs from the Port of Loading to the Port of Delivery, after which preparations for the next shipment commence.

Buying from FECO EXPORTING

Submit Purchase Intent: Advise your purchase intent via email, including all relevant specifications and desired refined products. FECO EXPORTING will communicate an offer as the seller to the end buyer based on merit and at our discretion.

Acknowledgement

We are grateful for the information and expert guidance provided by FTN Exporting and its CEO, Davide Giovanni Papa. The content on their website (https://www.ftnx.net/) has been an essential resource, offering deep insights into global trade procedures and documentation that were instrumental in the development of our work.