How does an oil producing country sell its oil.

Say there is a country which produces some 2 million barrels per day. Consumes half million and sells the remaining 1.5 barrels to the international market. How does it go about it - in detail ! Please.

Thank you.

Sorry, but not as clear cut as that.
It's all based on Contracts and Futures.

Hopefully this article should shed some light on the subject: BBC NEWS | Business | Oil markets explained (http://news.bbc.co.uk/1/hi/904748.stm)

Hello c:

It's probably already given it's oil to the oil companies, or it wouldn't have even made it out of the ground.

excon

Many thanks Curlyben and Excon.

Not the answer I am looking for, but your replies did raise some significant points to consider in search of an answer.

The search goes on :)

Cheers.

Did you have a look at the link I posted as it should give you more information for research, but rest assured your "model" is not accurate as it stands so you need a rethink.

Did you have a look at the link I posted as it should give you more information for research, but rest assured your "model" is not accurate as it stands so you need a rethink.

I did exactly that, and the link you kindly provided was most helpful terms of general idea of the Oil market, and types of crude oil traded, etc. But what I am really after is that "how the oil producing nations governments - in OPEC that is - go about the sales aspect, after producing the oil!

Excon mentioned that its probably all under the control of the Oil companies. That might the case in the pre-1973 era, and may apply now to some nations. Yet most of them OPEC market their own black gold and do not allow foreign companies to do that for them. They do it on their own. And that's where my question lies: how these governments market/sell their oil !

Cheers!

More links for you.

Oil Market Basics (http://www.eia.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/)
Oil Markets | Globalization101 (http://www.globalization101.org/oil-markets/)