Commodities
Refined fuels and bitumen: the basics
An introduction to diesel, jet fuel and bitumen trade: specifications, quantity measurement, storage, documents and the checks that matter most.
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A highly standardised product group
Diesel, gasoline, jet fuel, fuel oil and bitumen come from crude oil refining. Unlike many commodities, refined fuels are tightly specified by national and international standards. The buyer expects a defined product, such as a diesel with a stated maximum sulphur content, and a failed specification can make a cargo unusable in its destination.
Reading a fuel specification
- Standard or grade: the named specification, for example a European or American diesel standard, or an aviation fuel specification.
- Sulphur content: tightly limited in most markets, with ultra-low sulphur grades.
- Density and distillation: indicate the mixture of hydrocarbons and suit certain climates.
- Flash point: safety, as it shows how readily the product ignites.
- Cold properties: cloud point or cold filter plugging point, which matter in winter and cold climates.
- Cetane number for diesel and freeze point for jet fuel.
- Water and sediment content, and additives such as biofuel content.
Quantity and temperature
Liquid volume changes with temperature, so quantities are usually corrected to a standard temperature, commonly 15 degrees Celsius. Inspectors measure the tank before and after transfer, record temperature and density, and calculate the quantity in metric tons or in barrels. Metric ton is the weight unit used for most cargoes, and barrel is a volume unit. Know which unit the price and the contract use, and apply the right conversion.
How fuel is delivered
Ex-tank and tank-to-tank transfers
The buyer takes the product from a named storage tank in a terminal, by pipeline transfer to the buyer's tank or by loading a vessel. The terminal operator confirms the stock and the transfer.
Vessel cargoes
Cargoes load on tankers at a refinery or terminal jetty, with an independent inspector measuring and sampling. Pricing is often linked to published assessments for the grade and location, plus or minus a premium.
Road and rail
Smaller volumes move in trucks or wagons, with weighbridge or meter records and delivery notes.
Proof that the product exists
Fuel is easy to describe on paper and hard to verify, which is why proof matters. Reasonable evidence includes a storage agreement or a tank statement from the terminal operator, an independent inspection of the quantity, a refinery certificate of quality for the batch, and the identity of the party who has the right to release the product. A seller who cannot show these should not be paid in advance. The safety articles describe the pattern of recycled fuel offers, and a call to the terminal using contact details you found yourself is a good test.
Bitumen
Bitumen is the heavy residue used mainly for road surfacing and roofing. It is graded by how hard or soft it is, shown as penetration grades such as 60/70 or 80/100, or by viscosity grades. Polymer-modified products are made for demanding road uses. Cutback and emulsion grades are used in other applications.
- Specification: penetration or viscosity grade, softening point, flash point and ductility according to the named standard.
- Temperature: bitumen is kept hot for pumping and shipped in heated tanks or in insulated, heated bulk containers, or packed in drums, bags or flexitanks.
- Storage: the receiving terminal or plant needs heated tanks.
- Origin and refinery: crude source affects performance, so users often approve specific refineries.
Documents and regulation
Typical documents are the commercial invoice, bill of lading, certificate of quality, certificate of quantity and a safety data sheet. Fuels are often subject to licensing, excise, quality control at import and sanctions screening, and some origins are restricted. Check the rules of both countries and of your bank before committing.
Where to start
Fuels move in large values, so compliance and verification dominate. Begin by learning the standard for one product, follow an inspected transfer from start to finish, and use the Energy channel in the Deal Room to ask how others verify stock and storage.
Frequently asked questions
- Why is fuel quantity corrected to a standard temperature?
- Volume expands and contracts with temperature, while mass does not. A standard temperature allows quantities to be compared fairly.
- What does a penetration grade like 60/70 mean?
- It indicates how far a standard needle sinks into the bitumen under set conditions. A grade of 60/70 is harder than 80/100.
- How can I check that a seller has the fuel?
- Ask for a storage agreement or tank statement, verify it with the terminal operator using independently found contact details, and arrange an independent inspection before paying.
- Is metric ton the same as barrel?
- No. A metric ton is a unit of mass and a barrel is a unit of volume. Converting needs the product density.
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