- API gravity
- A measure of how heavy or light a petroleum liquid is compared with water. The higher the number, the lighter the oil.
- Assay
- A laboratory analysis of a crude oil grade, showing its properties and the yields of products it gives when refined.
- Bill of lading
- The document a carrier issues for cargo loaded on a vessel. It is a receipt for the cargo, evidence of the contract of carriage and, in negotiable form, a document of title.
- Certificate of origin
- A document stating the country where the product was produced.
- Certificate of quality
- A laboratory document that reports the test results of a sample against the specification.
- Certificate of quantity
- A document from the inspector stating the quantity loaded or discharged, measured in the shore tanks or on the vessel.
- CIF (Cost, Insurance and Freight)
- An Incoterms rule for sea transport. The seller pays freight and insurance to the named port of destination, and risk passes to the buyer when the goods are on board at loading.
- DAP (Delivered at Place)
- An Incoterms rule for any mode of transport. The seller bears the risk until the goods are at the buyer's disposal at the named place, ready for unloading.
- Demurrage
- Compensation the charterer pays the shipowner when loading or discharge takes longer than the agreed laytime.
- Documentary letter of credit
- A bank's undertaking to pay the seller when it presents documents that comply with the terms of the credit.
- FOB (Free on Board)
- An Incoterms rule for sea transport. The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, and risk passes when the goods are on board.
- Incoterms
- Rules published by the International Chamber of Commerce that define where delivery, risk and costs pass from seller to buyer.
- Laytime
- The time allowed in a charter for loading and discharging a cargo.
- Q&Q inspection
- Quality and quantity inspection by an independent inspector at the loading or discharge point.
- Standby letter of credit
- A bank's undertaking to pay if its client does not pay or perform as agreed.
- Sweet and sour crude
- Crude oil with less than 0.5% sulfur is commonly called sweet; crude with more is called sour.
- Tank storage agreement
- A contract with a terminal operator for the use of tank capacity, with its fees and handling terms.
- Ullage
- The empty space above the liquid in a tank. Measuring it is one way to calculate the quantity in the tank.
See how these terms fit together in the life of a trade. For background on crude oil and petroleum products, see the U.S. Energy Information Administration.