Public Commentary: FG Capital Advisors shares best practices for sourcing EN590 ULSD and exposes common discount scams. This information is provided for guidance and does not constitute an offer.
How to Find Genuine EN590 ULSD Suppliers and Avoid Discount Scams
Ultra-Low Sulphur Diesel (EN590 ULSD) trades at market-based premiums plus logistics and financing costs. Any offer claiming $50 per tonne below spot is almost certainly fake. Understanding the supply chain, financing moments, and hedging practices is key to sourcing real product and protecting your capital.
Supply Chain and Pre-Shipment Financing
Genuine EN590 flows from refinery to trader to terminal, then on to end-users. The critical window for margin capture is during pre-shipment financing, when title documents secure short-term credit against loaded cargo. Even then, shifts in spot curves can erase any small spread.
Margin Capture Requires Hedging
Physical traders lock in margin by hedging futures or swaps. Without hedge protection, price swings on a 50,000-tonne cargo can generate losses far exceeding any advertised “discount.” True arbitrage opportunities are rare and fully reflected in hedging costs.
Why Discount Offers Fail
- Ghost Product: Sellers claiming deep discounts supply no real cargo—only doctored bills of lading and falsified certificates.
- Poser “Buyers”: Perpetrating the lie of risk-free profit often collect fees for mandates or allocations without any trading capability.
- Financing Realities: Pre-shipment loans cost roughly SOFR + 5–7 %, which consumes any minor price gap immediately.
Reliable Counterparties
Large trading houses and oil majors operate with transparent pricing and confirmed cargo availability:
| Company | Strength |
|---|---|
| Vitol | Global refining and storage network |
| Trafigura | Diverse supply hubs and trading platforms |
| Totsa | Integrated logistics and refining access |
| BP | Major refinery output and branded offtake |
These firms transact at spot-plus spreads that cover cost of supply, financing and hedging—no unicorn discounts.
Why Brokers Struggle to Find Product
Searching for “EN590 $50/mt below market” is shorthand for chasing a unicorn. Competent sourcing demands strong relationships with ratified traders, routine terminal visits, and disciplined credit checks—not fee-based mandates for phantom cargo.
How FG Capital Advisors Assists
- Map verified supplier networks and credit lines.
- Structure pre-shipment finance to optimize working capital.
- Advise on wholesale hedging to lock realistic spreads.
- Conduct advanced due diligence on sellers and logistics partners.
- Negotiate fair commercial terms aligned to market dynamics.
Engagement
To secure authentic EN590 ULSD and arrange structured trade-finance support, contact FG Capital Advisors. We guide you through each step, so you source fuel at bona fide market terms and protect your margin.
This content is for informational purposes only. It does not constitute investment advice or an offer to buy or sell any security or service. Independent professional advice is recommended before acting on any information herein.
