How do ISIS even sell their oil?

Discussion in 'Commodities Forum' started by Hedonologist, Nov 19, 2015.

  1. Hedonologist

    Hedonologist Well-Known Member

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    What is the procedure for them selling oil? Surely I would have thought that it wouldn't be able to filter through to international markets, and considering their in internationals co-operation against them, I wouldn't have thought they would be able to sell direct either.
     
  2. baudwalk

    baudwalk Senior Investor

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  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Now that is the real question, who is the big dealer who buys it all? If the article is even close to correct, they are somehow selling 80k barrels of oil per day... that is way too much to simply push a bit here and there, many small streams make a big river but a river of 80k barrels a day into international markets without people knowing where it comes from? I wouldn't be surprised to see a large part of this oil, of course much cheaper than the global market prices, heading into 1 or 2 countries... countries who want it cheap but don't really care where it comes from.
     
  4. Corzhens

    Corzhens Senior Investor

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    Of course the oil in ISIS controlled places are sold via the sales contract that was previously in place before the takeover of ISIS. Since the buyer needs the oil and the seller (appointed agent of ISIS) is in good faith then the transaction continues. But come to think of it, an embargo can cost ISIS a great deal. What if the buyers would buy oil from another source? That would leave ISIS with no money and surely they cannot support their military force anymore. Maybe the enemies of ISIS should be thinking of that issue.
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    The oil sold by ISIS is certainly not being sold under any sales contract, certainly not directly anyway. Buying such oil would be the very definition of illegal and any company caught doing so would be most certainly charged with aiding terrorism and that would be the end of them.
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    When you're selling it at a 50%+ discount, you're going to find buyers. And you're going to make 100% profit on every barrel you sell when you're stealing it.
     
  7. kgord

    kgord Senior Investor

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    It is sobering to think we may be using oil stolen by ISIS in some form. I hope that isn't the case. I wonder if we would all be so thrilled with the cheap gas prices if we knew where it was coming from? Food for thought..
     
  8. baudwalk

    baudwalk Senior Investor

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  9. Onionman

    Onionman Senior Investor

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    It's very sad that there will always be a market for cheap oil like this, though I'm still surprised that there hasn't been enough international political will and effort to stop it. I could be wrong but I always think that it starts with Saudi Arabia and whether it's in their interest to dictate the oil narrative in the region. If they really wanted to stop the availability of this oil then they are more capable than most to have an impact.
     
  10. crimsonghost747

    crimsonghost747 Senior Investor

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    Yeah good point, when the infrastructure is there the only thing you need to do is either threaten the people to work there, or better yet go with "this is your religious duty to help our cause" and you've got free work force... so pretty much free oil. But I think that the Russians will definitely try to cripple the ISIS oil trade... it's win-win for them. ISIS losing funding AND oil price going up... I'm sure Putin wouldn't mind that.
     

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