ISIS conquers refinery Iraq, oil market reacts restless

Posted on 24-06-2014 at 14:25 by sir_smokalot – 47 Comments”

A few hours ago the rebels of ISIS, according to messages the most important oil refinery of Iraq besieged and taken. You could argue that the international oil market ‘not amused’.

ISIS, not to be confused with the nice-looking Dutch DJ from the 90s, is a group full of zealots that an independent muslim state in Iraq and the Levant has pursued, and is already busy with a terreurtocht by Iraq. Their belief is that the only right interpretation of a religion (preferably gruesome) murder of dissenters is encounter here and there on misunderstanding, but she ploughs stoically by, on the road, a lot of sji-ites and other opponents neermaaiend.

Now they are 180 miles north of Baghdad halted at the Baiji refinery, a nice goldmine in your possession, because that AK-47’s and ammunition must be somewhere to be paid at the end of the account. Baiji has a capacity of 310 000 barrels per day (source), good for about a tenth of the Iraqi oil production. After a few days of fighting and air strikes by the army seems ISIS now has the upper hand. It says the daily management of local tribes.

The oil market, which has been in a permanent state of overvoltage, reacts directly with prijsstijgigngen. And as you know, price increases are always passed on. So don’t be surprised if you binennkort something more must be going to pay at the pump. But on the other hand: you can you have to worry about the fact that you are a few cents extra is lost to you tank to fill, this is entirely not the suffering of victims families.

Incidentally, you may be wondering whether a surge in the price of oil is justified. According to the international energy agency is the world production of 85 million barrels per day, 1 refinery that 0.3% of these provides would not be a difference. But well, the market works differently.