How to Find a Genuine Title Holder or Refinery in Commodities Trading (2025 Guide)

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August 25, 2025

One of the biggest questions I hear from buyers, intermediaries, and even mandates is: “How do I know if I’m speaking with a real title holder or refinery?”

It’s an important question. The global commodities market is full of offers that look professional at first glance but collapse under scrutiny.

From EN590 diesel to Bonny Light crude, too many buyers waste time, or worse, lose money dealing with people who have no real product.


Due diligence checks on refinery allocation papers, ensuring authenticity in commodities transactions

Why It Matters

Every legitimate trade begins with clarity: who actually owns the product? A title holder is the entity with the legal authority to sell — typically a refinery, a producer, or a government-backed allocation.


Without that verification, buyers risk:

  • Paying deposits to fraudulent sellers.
  • Damaging relationships with banks or genuine suppliers.
  • Delays in securing real supply chains, which impact client commitments.


Industry estimates suggest that over 60% of unsolicited petroleum offers circulating in 2024–25 showed at least one fraud marker — from unverifiable refinery names to recycled SCOs.

Red Flags to Watch

  • Prices significantly under market benchmarks.
  • SCOs or FCOs without refinery seals or signatures.
  • Demands for upfront cash deposits (“tank fees” or “guarantee deposits”).
  • Refineries that cannot be found in official trade or corporate registries.
  • Overly complex broker chains with no traceable link to the product source.



Industry Insight

Buyers working with licensed brokers report a 30–40% higher transaction success rate.


2–5%

UNODC estimates 2–5% of global GDP (US$800bn–2tn) is laundered annually through trade mispricing — much of it in commodities.


60%

Over 60% of unsolicited petroleum offers are flagged as fraudulent.



Oil Industry insights on global commodities — verifying title holders through compliance and traceable documentation

My Perspective

In Abu Dhabi, I’ve seen how much weight is placed on compliance, licensing, and direct verification with government-linked entities. In London, markets move at speed — buyers focus on risk hedging and execution, not chasing recycled documents. Both environments have shaped my approach: clarity, due diligence, and direct links are the only way to secure real supply.

Takeaway

Finding a genuine title holder is not about chasing every offer that appears in your inbox or WhatsApp group  it’s about discipline, process, and professional judgement. A real title holder will withstand scrutiny: their documentation aligns with Incoterms 2020, their company registration can be verified, and their refinery or allocation is traceable. Too many buyers still waste time with “paper brokers” who recycle SCOs and pass them around like trading cards. This is not where genuine deals are found.


Instead, focus on three pillars: verification, compliance, and relationships. Verification means cross-checking licences, refinery allocations, and corporate structures. Compliance means ensuring procedures are bankable, no upfront deposits, no unverified fiduciary accounts, no manipulated PPOP. Relationships mean building trust with mandates and brokers who can actually open doors to refinery compliance desks or corporate sellers.


From my own experience, the buyers and mandates who succeed are the ones who combine sharp due diligence with long-term strategy. They understand that clarity is the ultimate advantage in a market built on trust. If you know who really holds the title — and you only engage with those who can prove it — you cut through 90% of the noise and protect your capital, reputation, and supply chain.