Crude oil prices sold by ISil from the capture oilfields between Iraq and Syria

A colossal swathe of territory between Syriaand Iraq that is control by the Islamic State of Iraq and Levant (Isil) is reportedly selling crude oil from the seizure oilfields on the black market at less than half the global international prices, earning themselves over £1 million/day, according to the industry experts from the Middle East. As on 22^nd August, 2014 the existing market price for a barrel of Brent Crude that is a foremost standard price for oil that is purchased worldwide stands at approximately around USD 102/barrel and their crude oil sold by the Isis militants is between USD 25/barrel and USD 60/barrel.

Moreover, the global oil prices had lingered unpretentious in spite of the black market oil supply generated by Isis, as quantities traded in the black market are minimal. According to the industry experts, in Iraq around seven oil fields and two refineries and also in the eastern provinces of Syria around 60% of oil fields are begin allegedly controlled by the Isis militants.

Furthermore the crude which is being transported to Iran via Kurdistan, Jordan via the Anbar province, Kurdistan region of Iraq, local market of Syria and Turkey via Mosul are also begin controlled by the militants apart from controlling a number of smuggling routes. However, in comparison to 9 million barrel/day from Saudi Arabia, the ISIS militants are reportedly smuggling around 30,000 barrel/day of oil.

Despite the fact that the capacity is small, it is disquieting and noteworthy and through the sale of oil it is able to generate almost USD 2 million/day and also finance its operations. Since the territory is under ISIS control, the regions between Iraq and Syria have become apparent as the ideal black market to sell the oil.

Nevertheless, the countries such as Turkey have overlooked towards the practice and in the Southern region of Turkey, pressure from international ought to be accumulate to wrap up the black markets, however historically the Southern region of Turkey, Eastern Syria and Northern Iraq is well-known for smuggling.

According to the sources, if the ISIS can cope up to lynch on their vast other than fragile holdings, it can pull in over USD 700 million/year in the course of a amalgamation of smuggling crude oil and smaller quantities of refining itself at its refineries in Syria as projected by few experts. As per the industry experts, during winter in Eastern Europe the demand for black market oil is expected to reach your zenith and in the coming weeks Isil is prone to thrust in more oil.

As the Southern region of Iraq is its dominant producer the collision will be minimal in the short to mid-term, however oil trading by ISIS so far has remained local with buyers in Syria, Jordan, Iran and Turkey via truck owners and middlemen network.

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