The one good thing about the fall in global oil prices is probably ISIS wage cut
One of the most organized and deadliest terrorist groups in the World, Islamic State of Iran and Syria (ISIS) announced two days ago that it would slash its fighters’ salaries by half. The wages for an average ISIS soldier ranges between $400 and $1200 a month, in addition to a $50 stipend for their wives and $25 for each child. According to a statement released by the group last year, this decision was made due to “exceptional circumstances” and would not exempt anyone regardless of position. But despite this decision, the group would “continue to distribute provisions twice every month as usual.”
ISIS oil business
Profits gotten from the illegal sale of petroleum is ISIS’ most important revenue source. Therefore, analysts in the United States have attributed this little victory of wage cut to the bombing runs of the United States and its allies on ISIS oil fields and refineries, as well as the trucks transferring crude products to their lack market buyers. However, that’s only part of it. ISIS has also been hit hard by the global prices of oil that is presently hovering around the $27 mark, per barrel.
According to a report by the Financial Action Task Force published in February 2015 on the financing of ISIS, the terror group reportedly sold oil at $20 – 35 per barrel on the black market to middlemen. These middlemen then sell between $60-100 to their buyers outside of ISIS territories. However, since the bombing of their oil facilities started last year, they’ve had to resort to the use of primitive methods to refine their oil hereby reducing their daily output of production. Now, however, coupled with the fact that global oil prices are more or less equal to the price they sell to black market, this reduction in oil prices has greatly crippled their revenue. Though the group has devised other ways by which it generates money to fund its operations, it is safe to say oil money is a no-no for them right now. Perhaps, the fall in oil price should continue some more?
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