The physical fuel market rewards buyers who verify before they commit. Most losses come not from bad prices but from bad counterparties. Use this checklist to separate a real supplier from a plausible-looking fake.
1. Insist on independent inspection
A genuine supplier transacts on SGS, Intertek or Saybolt inspection of the actual parcel. If quality and quantity are only ever "guaranteed" by the seller’s own word, walk away.
2. Demand named specifics
Real deals have named load/discharge ports, named terminals, a clear Incoterm (CIF/FOB), and a written specification. Vague "we are a trusted global leader" language with no specifics reads exactly like a scam site.
3. Check the document sequence
The paperwork should follow a logical order (LOI → SCO → ICPO → contract → POP/inspection → delivery). Be suspicious if a "seller" demands your ICPO and full banking details before offering anything — see ICPO and SCO explained.
4. Refuse upfront fees
No legitimate refinery or intermediary charges an upfront "verification", "allocation", "POP release" or "token" fee. This is the most reliable single red flag.
5. Verify identity and paper trail
Confirm corporate registration, a consistent business address and contactable people. Treat MT199/MT799 messages, unverifiable allocation letters and below-market prices as warnings, not assurances.
6. Require KYC on both sides
A serious counterparty expects to be screened and screens you in return. LinkPort’s compliance process documents KYC/AML for buyer and seller before transacting.
Rule of thumb: the more specific, inspected and documented a supplier is willing to be, the more likely it is real. Specificity is trust.
For the full catalogue of warning signs, read oil trading scam red flags. When you are ready to test a supplier against these criteria, contact our trade desk.
Frequently asked questions
What is the fastest way to spot a fake supplier?
Ask for independent SGS inspection, named ports and a written procedure with no upfront fees. Fakes resist all four.
Is a below-market price a good sign?
Usually the opposite. Prices far below the market are the classic lure to extract a deposit. Genuine ULSD and crude trade within a market range.