Difficulties in international trade in the fuel market
The globalisation of the economy has opened up access to distant local markets for oil companies and their contractors. With the extension of coverage, however, the profile of problems that the international fuel market has to deal with has changed.
The diversification of oil fields, the development of refining technologies and the ease of transporting this resource allow us to cover the whole world with rapid transmission. The lack of restrictions is very apparent here.
Unavailability of resources and sensitivity to changes
A characteristic feature of the fuel market is the controlled amount of the resource on the market. The global economy must constantly monitor the level of consumption of fuels or petroleum products in order not to lead to downtime caused by a lack of them. A constant market deficit keeps the price of the resource in check and limits fluctuations in demand. The geopolitical situation in the world also has a huge impact on the shaping of the fuel market. The oil industry is a litmus test of micro- and macroeconomic changes. Forecasts in their scope are difficult to estimate, which significantly impedes oil companies’ long-term planning.
Dumping and unethical practices
At OROTAL, we devote a lot of attention to protecting against the effects of unfair competition. – Permanent or selectively used dumping practices have a negative impact on transaction security and the development of resource prices – as our fuel market experts assess. In this market, as in many other industries, commercial activities are used whose reliability and transparency may leave much to be desired. – That’s why reliable advice in the oil business is invaluable, allowing you to make the right decisions efficiently – as we emphasise at every stage of cooperation with investors.
Assessment of contractor credibility profile
Along with fluctuations in crude oil prices, the position of individual market players changes. The cheaper the resource, the more entities are on the edge of solvency. Changes in exchange rates against the dollar are also of great importance, which is one of the resons why oil companies generate so-called junk bonds with a very low rating. Taking care of investors’ interests, OROTAL helps consciously choose contractors whose financial profile has been positively assessed on the basis of reliable data and experience resulting from investments carried out so far.