I remember vividly reading about ISIS crude being smuggled and sold to Turkey when WTI was near $100. Back then, pricing pressures in the region were significant because they’d sell the oil for 50% off, sort of a bargain basement terrorist going out of business sale. Apparently, they’ve lost virtually all major Iraqi oil fields and now have to rely upon Syrian fields, which are coming under severe pressure by government and Russian forces. It’s worth noting, they’re selling the oil for $15-20 per barrel now.
Perhaps it was all just a coincidence, oil dropping after ISIS grabbed control of significant reserves. We’ll know for sure, only after they lose their last field by watching to see if the price of crude runs higher as a result.
If you enjoy the content at iBankCoin, please follow us on TwitterThe oil ISIS holds in Syria constitutes 70% of its total income as they hold six key oilfields in the country,” Khinsi explained.
In Syria, ISIS holds three significant oilfields. Of the 80,000 barrels ISIS produces on a daily basis, it sells 50,000 through smuggling and “each barrel sells for $15 to $20.”
According to Khinsi’s figures, the extremist group makes an estimated $750,000 daily and $22.8 million per month.
But oil is not the terrorist group’s only source of income, the Kurdish economist explained. “Euphrates and Al Baath dams produce electricity and the Syrian regime buys it.”
A local from Mosul told Rudaw that ISIS is looking for other ways to gain an income, even playing on the anticipated military operation to liberate the northern Iraqi city.
“It is rumoured among the Mosul people that they will be allowed by ISIS to leave the city if they pay $4000,” a Mosul resident, who declined to reveal his name, told Rudaw, adding that “the Mosul people do not trust ISIS as they believe they will lose both, their lives and money.”
Not to worry. They still have the sweetest of sweet in Libya.
Pikers… Pablo Escobar made in one day what takes them three months!
Any word on their IPO?