ISIL faces slump in oil revenues

US-led coalition forces' airstrikes has blocked ISIL from selling oil. The air strikes have also pushed the group to use more primitive methods in refining oil, the report said.

ISIL faces slump in oil revenues

World Bulletin / News Desk 

Coalition forces' airstrikes combined with strong border security in Iraq and Turkey has prevented ISIL from selling oil, a recent report prepared under the supervision of Turkey and the United States reveals.

Bombings have hit the limited oil refining capacity of the ISIL, according to the Financial Action Task Force's report entitled "Financing of the Terrorist Organization ISIL"

The limited refining methods, such as burning the crude in open pits, a technique which produces low yields of poor-quality product, have also hurt the group's oil revenues.

But ISIL's oil revenues have also suffered from the fall in oil prices, and the oversupply on the oil market.

"ISIL benefits mostly from using the petroleum and petroleum products it controls or by earning revenues from sales of these resources to local customers," the report states.

ISIL's oil revenue also comes from sales through middlemen and smugglers who transport the oil and oil products to ISIL-controlled territories and nearby areas, including the Syrian regime.

Powerful local families that have long and historical relationships with the Syrian regime constitute a wide network for ISIL's oil to be traded, as these families "are known to have dealings in arms and drug smuggling." the report reveals.

These smugglers and middlemen buy oil from ISIL at below the market price, paying only $20 to $35 per barrel, and then trade it at $60 to $100 per barrel in local markets, the report said.

"A representative truck carrying approximately 150 barrels of crude oil earns roughly $3,000 to $5,000, depending on the degree of refinement of the crude oil," the report said.

Güncelleme Tarihi: 09 Mart 2015, 14:16