"Careful Trader" Business Approach
A no-surprises trading style engineered to minimize — and where possible eliminate — failed trades, capital losses, and exposure to price volatility, while securing the profitability and overall success of every transaction.
Betel Energy was established to operate international oil product wholesale trading. Our operations are centered on selling finished petroleum products at competitive prices with timely delivery to large corporate buyers and end users (transportation companies, airlines), as well as the independent resellers of fuels in the secondary marketplace.
The company's operating policy is derived from the underlying principle of ensuring a reliable and safe trade process and is built on security-oriented business approaches that prevent fraudulent trade practices and financial loss and guarantee the overall success of trading. Within our operational policy, we place special importance on transaction security to provide stability, transparency, and credibility both in trade and in relations with partners and investors, and secure long-term growth.
For this reason, we take the so-called "careful trader" approach/style of operating when purchasing and supplying refined products, the intent of which is ensuring reliable trade execution. We take the "no-surprises" approach to the trading process that addresses the unique dynamics and risks of each deal and in which we strive to deliver safe, reliable operations, thereby ensuring risk mitigation and transaction security.
Operating in such a manner, we seek to minimize and/or completely eliminate the possibility of failed trades, the risks of capital losses and secure the transactions' profitability and overall success.
How We Operate
Our approach to the trading process ensuring reliable trade execution involves reasonable care and reflects how we act and operate when performing the trade.
Effective engagement with partners enables us to carry out trading with end-to-end Integrated Supply Chain and Risk Management Mechanism in place at all levels. We deal with the time-tested buyers and suppliers of crude oils and refined products from across the world, highly reliable from the perspective of their ethical and financial standing in the market. Their good reputation and track record of commercial stability in the oil products trading industry assures us reliable trade execution, involving optimal pricing, procurement, and logistics management from the supplier's side as well as trade fulfillment guarantees from the buyer's side.
Many of our markets are fragmented or periodically volatile and in a world of fluctuating fuel prices, changing international regulations, and developing markets no single solution is set in stone, but we strive to deliver sustainable trading solutions providing security, regularity, and reliability to our customers. Together with our trading partners, we leverage the market intelligence of supply and demand in the global commodity markets that allows us to consistently deliver above-average secure solutions.
Implementing our "careful trader" policy, we leverage our combined network of global relations with commodities buyers and suppliers to execute all the trades seamlessly with a thorough understanding of the intricate interdependencies of the global markets and demand-supply gaps.
Given that, Betel Energy focuses on medium-term (twelve months) delivery contracts directly with high credit consumers, thereby securing trade fulfillment guarantees from the buyer's side.
We enter into supply contracts with our customers at the earliest stage of the trading process and have a "matched trade" set up with a ready wholesale buyer before we execute any of our purchases.
Our sourcing is also based on offtake agreements that we/our suppliers have in place with various refiners.
Getting first-hand market information (Platts prices, pricing from suppliers/refineries, etc.) in combination with trading project forecasting and planning enables us to minimize our exposure to oil and fuel price volatility.
An additional factor minimizing and/or eliminating the impact of price volatility on the success of our trades is that the pricing structure that Betel Energy follows on a global scale is based on Platts. This model gives transparency to any fluctuations in world oil prices. Prices in supply and purchase agreements with both sellers and buyers are pegged to Platts, which allows ensuring the profitability of fuel transactions regardless of market changes and price fluctuations.
We understand that every fuel transaction has its own set of unique characteristics so we are flexible in how we transact each and every fuel trade. We understand the work, understand unique dynamics and risks of each deal and strive for flawless execution, reducing any risks, including for project schedules and costs.
Along with a flexible approach to transactions, at the same time, the course of action remains common across all trades, where identifying and controlling risks starts at the beginning of the design and verification process.
This approach is part of our top Seller's Proprietary Risk Management Strategy that ensures the timely delivery of a buyer's product and complete protection of the buyer's capital.
Conclusion
The purchase or sale of petroleum products requires the utmost in deliberation and risk management. This approach is necessitated by the need to protect the business from fraud and misrepresentation that the petroleum industry is riddled with, as well as secure profitability of trades when fluctuating fuel prices and level of demand.
We attain our business security/profitability objectives within our trading process approach that is enabled by:
- dealing with reliable, established trading partners: verifiable and performing suppliers of the crude oil and refined product offers, and reputable and high credit consumers/end buyers or experienced traders.
- having in place trade fulfillment guarantees from the buyers' side by entering into supply contracts with wholesale buyers at the earliest stage of the trade process prior to executing any purchases and financial transactions.
- using rigorous and transparent procedures and agreements.
- following the model/structure of pricing based on Platts (when contracts prices are pegged to Platts.)
- applying secure and safe methods and arrangements in transaction financing, banking, including third party oversight.
- flexibility and leveraging various strategies and business models (depending on the specific objectives and particular trades).
- leveraging the synergies with trading partners in risk management.
Employing each and every of the listed approach components in the work, allows us to have a "no surprises" trading process and ensure the safety and profitability of our fuel transactions even in conditions of a periodically volatile market.
At no time will Betel Energy operate in a way that jeopardizes to the slightest extent the security of deals and puts at risk our financial partners' capital and overall success of the trade.
Partnering with us, an investor gets a working, efficient business without the slightest risk of being scammed and/or involved in a fraud.
A trade process designed so there are no surprises.
If a disciplined, security-first approach to fuel trading aligns with how you deploy capital, we would welcome a direct, unhurried conversation about partnership.