Legal and Jurisprudential Investigation on Pricing Method in the International Long-Term Crude Oil Sale Contract

At present, at the international level, the largest volume of trade is related to the sale of crude oil and petroleum or gas products. Sales of crude oil and its products are often in the form of long-term contracts or single-unit cargos. Due to price fluctuations and high sales volume of this type of products, the price of the transaction is determined in a formulaic manner and related to the international indices in order to control the price risk of the parties to the transaction. Multi-stage sales and floating prices in sale result in the problems of buying-selling with the goods and damaging.In this article, legal and jurisprudenial aspects of such transactions are described through analytical – comparative method.  If we consider this type of transaction as sale (bai), there would be the problem of buy-sell with the goods and based on some experts’ opinions, it will cause to damages. But if we interpret such a deal as a commitment to sale (bai) at the time of delivery, maturity, or even using the peace contract, there won’t be the problems of buy-sell with the goods (Kali to Kali ) and damage (Gharar) anymore.