The price can be divided into FOBFOB (also often written as f.o.b), which is a common price term in delivery to determine the party who pays the loading and transportation costs and the responsible party who transports the goods from the transporter to the buyer. FOB transportation is the cost of the owner/responsible party of goods in the process of transportation from the seller to the buyer, that is, to determine the responsible person and payer of transportation. FOB destination means that all expenses incurred before the goods reach the buyer shall be borne by the seller. The definition of FOB mode of transportation is very important when determining the responsibility for the loss or loss of goods in transit from the seller to the buyer. FOB transportation and the seller are responsible for transporting FOB to the destination. CAP, or "transportation arranged by consumers (plane or ship, etc.). ), which means that the buyer will choose a container ship for their arrival and be responsible for the loss and loss before the goods arrive at the buyer. FOB price (that is, the price from the oil exporting country) and CIF insured goods (CIF) are commonly used terms in sales contracts and can be used in international maritime trade. When a price is fixed CIF, it means that the selling price includes commodity price, freight transportation cost and insurance cost of maritime transportation. CIF is an international trade term. CIF is clearly defined in most CFR clauses and the same notes, including the cost only for regular sea transportation. The additional responsibility of CFR also includes that under CIF terms, the seller must obtain the transferable marine insurance right with good risk insurance reputation. This right must include additional 10% fee and possible contract payment point bills. Cost insurance freight, that is, "price insurance goods", is a price method for importing countries and consuming countries.

FOB and CIF

:: Private or state-owned or international companies.

FOB cost price+tax of oil-producing country+profit of oil company * CIF FOB crude oil price+insurance premium, transportation fee and the cost of goods arriving at the destination port of oil-importing country. Oil price: how to levy taxes? Like crude oil, petroleum products have retail and futures prices. An important European petroleum product market is Rotterdam, a port city in the southwest of the Netherlands. The benchmark crude oil price includes taxes paid for oil-producing countries. However, before crude oil actually reaches the consuming country, petroleum products will be taxed twice, which is levied by the consuming country itself. This second kind of tax, especially in Europe, is the highest compared with the taxes levied by ordinary oil-producing countries.

Because the unit cost of natural gas chain is much higher than that of oil chain, the unit profit rate of total profit may be lower. For a high-quality Middle East oil field, the profit can reach 6 ~ 15 times of the cost, while for smaller natural gas fields, their profit is only 2.4 ~ 5.3 times of the cost.

Unit cost analysis of natural gas fields in the Middle East: The storage price of natural gas is calculated by a natural gas field. (before tax)

* USD/barrel oil equivalent: USD value of barrel oil equivalent, a unit comparable to crude oil price.