International Oil Sales:

Truth:

The international purchase and sale of crude oil is a very, very tightly controlled system.  There are various grades of crude oil each having its own particular characteristics that affect its value.  Some countries have better crude than others, some countries have embargos against the export of crude oil.  Regardless of the origin or quality, contracts for crude oil are closely held by a small community of traders specializing in petroleum products.  As with the trading of any commodity, trading in oil requires an expertise that takes a good solid apprenticeship in the field.  It requires trained knowledge in the product itself, along with an understanding of all the political and international relationships that affect fluctuating prices.  It is not a field for amateurs.

Scam:

The most common scam is the supposed ownership of a crude oil contract from an Arabian prince.  The scam goes like this: An offer is made by a person who states that he has a long term relationship with an Arab prince, and provides the prince's name.  Usually the prince is a "member of the Royal Family."  Although the name may be authentic, one is warned not to attempt to contact the prince.  The reason given for the oil contract's existence is that OPEC supposedly provides a kickback to the royal family in the form of X number of barrels of crude to sell at their leisure.  The barrels are meted out to various family members to provide an income for the princes.  Okay, that's part one.

Part two is a little more complicated and has to do with the crude being sold at so much over LIBOR, PROOF OF FUNDS, LETTERS OF CREDIT, BACK-TO-BACK LETTERS OF CREDIT, meetings in Kuwait or Baghdad, commissions and counter-commissions, Non-Circumvention Non-Disclosure Agreements (NCND's), shipping agreements, loading agreements, and a bunch of ballyhoo that goes nowhere and accomplishes nothing.  All the fellow who made the offering wants is for someone to send him a major wad of money for nothing in return.  The attempted scam can cover weeks of phony negotiations and cost amateur INTERMEDIARIES hundreds of dollars in phone bills.

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