Black market crude supplied from oil fields controlled by Islamic State (IS) is selling for less than US$30 per barrel according to Iraqi Oil Minister, Adel Abdul-Mahdi.

The legitimate oil price on world markets is currently swinging wildly either side of US$50 per barrel.

Iraqi oil fields
IS has taken control of small Iraqi oil fields in the north and west of the country as well as fields in Syria and sells crude on the black market to finance its operations.

The acquisition by IS of the Alas and Aujil oil fields in Iraq’s Salahuddin province were seen as an effort by the self-declared state to increase its portfolio of oil fields.

Iraqi forces have since recovered the two fields from IS, which set fire to several wells before withdrawing from the area.

Sanctions threat
The US Security Council adopted last February a resolution targeting the sources of funding for IS and Al-Nusra Front (AML Newsflow, 20 February 2015).

The resolution threatened to impose sanctions on those who buy oil from IS and the Al-Qaeda-linked Al-Nusra Front.

It also prohibits trafficking Syrian antiquities and reaffirmed the ban on selling Iraqi antiquities, which was imposed almost ten years ago.

Categories: Trade Based Financial crimes News