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Primer: Commodity Trading

27 April 2015
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Primer: Commodity Trading (PDF 139.32 KB)
Topics
Mandatory payment disclosure, State-owned enterprises
Precepts
P2 P6 P11 What are Natural Resource Charter precepts?
Social Sharing
A particularly critical area for transparency is the sale of petroleum by national companies on behalf of the state. Disclosure should cover the amount of oil the company receives, and the price, grade, volume and date at which it is sold.

KEY MESSAGES
  • Commodity sales transfer natural resources physical assets into revenues. The sales can generate a large portion of government revenues in a country that is paid in kind, participates in production sharing, or has a state-owned company that produces itself.
  • Prices for sales of a commodity depend on many factors, including the grade or quality of the mineral. As a result, getting the best price for minerals or oil from a specific extraction point can be a complicated process that requires extensive expertise.
  • Buyers of natural resources vary in part based on their capacity to convert, or refine, the raw resource into a format that can be used by a consumer. Commodity traders do not convert resources themselves but instead make a profit off buying from national governments and selling to those who can supply end users.


Flow of Oil from NOC Sales - Commodity Trading 

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  • Topics
    Beneficial ownership
    Civic space
    Commodity prices
    Contract transparency and monitoring
    Coronavirus
    Corruption
    Economic diversification
    Energy transition
    Global initiatives
    Legislation and regulation
    Licensing and negotiation
    Mandatory payment disclosure
    Measurement of environmental and social impacts
    Measurement of governance
    Open data
    Revenue management
    Revenue sharing
    Sovereign wealth funds
    State-owned enterprises
    Subnational governance
    Tax policy and revenue collection
  • Approach
    • Stakeholders
    • Natural Resource Charter
    • Regional knowledge hubs
  • Priority
    Countries
    • Colombia
    • Dem. Rep. of Congo
    • Ghana
    • Guinea
    • Mexico
    • Mongolia
    • Myanmar
    • Nigeria
    • Peru
    • Tanzania
    • Tunisia
    • Uganda
  • Learning
    • Training
    • Primers
  • Analysis & Tools
    • Publications
    • Tools
    • Economic models
  • About Us
    • What we do
    • NRGI impact
    • Board of Directors
    • Advisory Council
    • Leadership team
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