Letter of Intent (LOI) in Crude Oil Deals _ The Legal Traps and Pitfalls of LOI for Crude Buyers. Nowadays, to hear many of the oil sellers and operators, particularly their brokers and agents, who are involved in the international open market crude selling, describe it, this document _ called the "Letter of Intent" or LOI, for short _ is not only an essential document for doing crude oil business, but one which every credible person or company engaged in crude buying should always use in initiating a purchase.
When "LOI" is used, it actually refers to the Letter of Indemnity. This is standard usage of the term and has been for decades. The Letter of Intent (hereafter referred to as LOI) is often used in specific domestic trades, such as in real estate or corporate mergers, but it has no standard usage in International Trade itself.