The refined product portfolio
Physical trading of refined products covers a range of grades produced by refineries from crude oil. 3FB Energy & Trade trades across the main categories below and arranges the logistics and documentation that accompany a physical cargo. The company also trades crude oil grades such as Basrah Medium, Basrah Heavy and Murban.
Each product below has a dedicated page covering typical specifications, commercial uses, inspection, shipping and the documentation issued against a shipment.
Products traded
- EN590 10ppm diesel — ultra-low-sulphur automotive diesel to the European EN 590 standard, 10 ppm sulphur grade.
- Jet A-1 — kerosene-type aviation turbine fuel meeting the Jet A-1 specification (DEF STAN 91-091 / ASTM D1655).
- Fuel oil — residual marine and industrial fuel oils, including 380 CST, VLSFO (0.50% sulphur) and HSFO grades.
- LPG — liquefied petroleum gas, commercial propane and butane and their mixtures.
- Bitumen — penetration-grade bitumen for road construction and waterproofing, typically supplied in bulk, drums or bitutainers.
- Base oils — Group I, II and III base stocks for lubricant blending.
How refined product trading works
A physical transaction moves from an indication of interest to a firm offer, contract, nomination of a cargo, loading, carriage and discharge. 3FB trades on both FOB and CIF terms; the choice of Incoterm determines which party arranges and pays for ocean freight and insurance. The difference is explained in our note on FOB versus CIF.
Delivery windows are agreed as a laycan (the laydays and cancelling dates between which the vessel must present). Payment is commonly arranged through a documentary letter of credit against presentation of shipping documents.
Quality and quantity verification
Independent inspection companies are appointed to sample, test and measure a cargo at load and, where agreed, at discharge. This produces the quality certificate and the quantity figures used for invoicing. Companies such as SGS and Intertek are examples of independent inspectors commonly engaged in commodity trading; 3FB coordinates their appointment but does not present them as partners. See how independent inspection works and our inspection page.
Trade documentation
A physical cargo is accompanied by a defined set of documents, typically the bill of lading, certificate of origin, quality and quantity certificates and the commercial invoice, with payment governed by the letter of credit. Our reference notes explain the bill of lading, letters of credit and the full document set.