Islamic State jihadists are raising as much as $1 million a day from the sale of crude oil recovered from conquered oilfields in Iraq that is then smuggled on to Turkey and Iran.
Oil industry experts believe the group formerly known as Islamic State of Iraq and al-Sham (Isis) is able to command $25 a barrel for crude its fighters are moving in tankers from the oil plains south of Mosul.
Middlemen based in the Kurdistan region of Iraq are able to turn a handsome profit on the supplies by selling its abroad for refining into the more valuable petroleum and diesel products.
The specialist Iraqi Oil Report said the centre of the $1million trade was the town of Tuz Khurmatu on the fringes of the Kurdish region. Traders there are buying convoys of tankers supplied by Islamic State.
Shwan Zulal, an Iraqi oil industry analyst, said the Islamic State was using its control of a 150-mile swathe of territory to loot crude oil from some of Iraq’s prime oil assets…