How do I check a counterparty that uses LOI in a deal?

The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.

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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.

Related: ICPO, NCNDA, Virgin D2.

Frequently asked

What does LOI mean in oil and commodity trading?: Letter of Intent — a pre-contract document expressing a party's intent to transact under specified terms.
How do I check a counterparty that uses LOI in a deal?: The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.