Contracts & documentsloi
LOI
Letter of Intent — a pre-contract document expressing a party's intent to transact under specified terms.
A Letter of Intent (LOI) is a pre-contract instrument. In physical oil trade it typically sets out: product, volume range, delivery window, target price or formula, and payment instrument. LOIs are not binding on commercial terms but often bind confidentiality and exclusivity.
The global red flag: in broker-scam circles, LOIs are weaponised into endless paper chains (LOI → ICPO → DLC MT700 pre-advice → PB issuance → etc.) with no actual cargo ever in inspection or at a loading terminal. If an LOI is requested before any verifiable tank receipt, SGS Q88, or Bill of Lading, treat the counterparty as unserious.
OilFlow Network's matching engine rejects pre-SPA document chains that don't reference a verifiable supply listing.
See also