Petrodollar Panic: EU Officials Admit Buying Oil From ISIS

Tyler Durden's picture


We recently explained how ISIS remains so well funded but what was unclear was who exactly what purchasing their 'recently-provisioned' oil reserves? The assumption being some desperate third-world nation or some scheming offshore hedge-fund arbitrageur; however, as reports, a senior European Union official has revealed that some EU member states have purchased oil from ISIL Takfiri militants despite their rhetoric against the group. The official declined to disclose any names but Turkey remains a front-runner (having already shunned President Obama) and potentially France (after their recent anti-Petrodollar comments).


As The Daily Signal's Kelsey Harkness ( @kelseyjharkness ) notes,

According to the Iraq Energy Institute, an independent, nonprofit policy organization focused on Iraq’s energy sector, the army of radical Islamists controls production of 30,000 barrels of oil a day in Iraq and 50,000 barrels in Syria.


And now we know who is buying... (as reports)

A senior European Union official has revealed that some EU member states have purchased oil from ISIL Takfiri militants despite their rhetoric against the group.


In a briefing to the European Parliament Foreign Affairs Committee, EU Ambassador to Iraq Jana Hybas-kova said some European countries have purchased crude from the ISIL.


She, however, refused to disclose any names despite pressure by some Parliament members to do so.


The EU official also warned against any support by the West for separatist Kurdish groups who, she said, would destabilize the Middle East.


Earlier reports accused Turkey of buying and transporting oil from both the ISIL and Qaeda-linked Nusra Front. According to the reports, Western intelligence agencies could track ISIL oil shipments as they moved across Iraq and Turkey.


ISIL reportedly controls eleven oil fields in northern Iraq as well as Syria's Raqqa province.


US intelligence officials estimate that the Takfiri militants earn more than USD 3 million a day from oil profit, theft, human trafficking and ransom. They say the militants sell oil and other products via established networks in Turkey, Jordan and Iraq's Kurdistan region. ?Turkey has denied reports of involvement in ISIL's oil smuggling operations.

*  *  *
How long before US places sanctions directly on these European nations (instead of implicitly through Russia)?

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/15/2014 - 14:04 | 5219264 Hippocratic Oaf
Hippocratic Oaf's picture

This whole ISIS situation looks almost too hollywierd produced to believe.

Mon, 09/15/2014 - 14:05 | 5219273 summerof71
summerof71's picture

production value is about onpar with the moon landing..

Mon, 09/15/2014 - 14:12 | 5219312 InjectTheVenom
InjectTheVenom's picture

more smoke & mirrors ! !      HAH ! !

Mon, 09/15/2014 - 14:24 | 5219359 knukles
knukles's picture

And Barry thinks the Europeans are going to stand up to ISIS and Putin.
Hah ha ha ha ha ha

Mon, 09/15/2014 - 14:25 | 5219364 whotookmyalias
whotookmyalias's picture

Because regardless of what anyone says, oil takes priority.

Mon, 09/15/2014 - 14:32 | 5219393 insanelysane
insanelysane's picture

You ever get the feeling that Kerry and Obama have been told by these countries that they are allies against us, but due to their arrogance believe these countries said they would be our allies???

Mon, 09/15/2014 - 14:35 | 5219401 Serfs Up
Serfs Up's picture

This is all unpossible.

The IEA has said the world is awash in oil.

Why would anyone risk buying from ISIL when there's so much to be had elsewhere at the click of a button?

Mon, 09/15/2014 - 14:41 | 5219421 max2205
max2205's picture

I hope they got the Kerry discount...LOL


Mon, 09/15/2014 - 15:55 | 5219742 Manthong
Manthong's picture

“Why would anyone risk buying from ISIL when there's so much to be had elsewhere at the click of a button?”


Because “Isis militants are selling their oil between £15  ($25) and £36 ($60) per barrel.”.

Tue, 09/16/2014 - 06:34 | 5221851 LostandFound
LostandFound's picture

This boils my fucking blood! the best way to stop these muppets is to cut off their money supply and instead we aid them by buying on the black market.

We are just asking to be nuked.....

Mon, 09/15/2014 - 14:44 | 5219439 Chupacabra-322
Chupacabra-322's picture

Wait a minuite. That meas the Criminal EU is aideing & a bedding the enemy which means the Criminal UNITED STATES, COPR INC. needs to prosecute then under the Patriot Act / NDAA.

What a joke.

Mon, 09/15/2014 - 17:29 | 5220055 Mentaliusanything
Mentaliusanything's picture

They supply the dollars for oil to buy the projectiles for the weaponary.. Vertical intergration with the bonus that every one wins in a circle jerk of love for profit over peace. Cry me a river.

War on terror is a boondoggle to support economic growth.... and fuck anyone who gets between it

Mon, 09/15/2014 - 18:38 | 5220299 Freddie
Freddie's picture

The EU is aiding and abetting beheaders in staged Wag the Dog blue screen productions. 

They could at least get some English stage actors doing Shakespearean type speeches before they are beheaded (sic).   Alas Cameron - I knew him well. 

They also need better costumes.  The perfectly clean orange perp walk outfits look too much like someone in Burbank ran over the California Bureau of Prisons to get a perp outfit.

The Paramount backlot never looks so deserty to me,   Looks like some of the old westerns they shot there.

Mon, 09/15/2014 - 23:55 | 5221336 Anybody
Anybody's picture


Mon, 09/15/2014 - 14:38 | 5219394 hobopants
hobopants's picture

ISIS seems like some western intelligence op gone bonkers. Like "Opps! lost control over that radical group, now they're just running amok randomly causing mayhem. Lets see how can we salvage this thing...hey look an orange jump suit and a ninja outfit, now to find a mac with imovie and we're set!"

Mon, 09/15/2014 - 15:14 | 5219550 thamnosma
thamnosma's picture

I figure it's something along those lines but also with very sophisticated players behind what on the surface look like a "bunch of crazies".   Some ISIS videos show them pulling cars over on Iraq highways and using laptops to identify targets they are looking for -- Iraqi army types or collaborators now dressed as civilians.  They know what they are doing. 

Mon, 09/15/2014 - 16:21 | 5219855 cro_maat
cro_maat's picture

They know what they are doing and the spook outfits (CIA / Mossad) know what they are doing as well. Notice how oil goes through Turkey before entering Europe for purchase. This was what the CIA / MIC did during the Vietnam war with opium from the Golden Triangle. I met a UN soldier who was stationed in Tehran during the Vietnam War who said his job was to guard the US C-130s that flew in every day from Vietnam loaded with opium. They would transfer this to several smaller planes and fly the shipment to Turkey where it would be delivered to the rest of the world. Turkey became the fall guy in case problems arose.

You can tell that ISIS / ISIL is sanctioned and run by the West because they were given a major cache of US weapons and equipment. US military SOP is to destroy (or use killswitchs on vehicles) any equipment / weapons that could possibly fall into enemy hands. Since this was not done then the U.S. military / Langley / State Dept. consider ISIS an ally / proxy.

Mon, 09/15/2014 - 15:26 | 5219618 DetectiveStern
DetectiveStern's picture

Mon, 09/15/2014 - 16:38 | 5219908 SDShack
SDShack's picture

So the EU buys discount oil from ISIS, and Kiev thinks the EU will have their back against Russia when it comes to NatGas - LOL! Better beware who is standing behind you Kiev and what their real intentions are!

Mon, 09/15/2014 - 14:13 | 5219316 TeamDepends
TeamDepends's picture

Mmmm ISIS oil, the richest kind!

Mon, 09/15/2014 - 15:47 | 5219699 ILLILLILLI
ILLILLILLI's picture

"Look for it in the plain brown wrapper."

Mon, 09/15/2014 - 14:28 | 5219379 Dr Strangemember
Dr Strangemember's picture

This is good for the stockmarket, no????? 

Mon, 09/15/2014 - 14:28 | 5219381 El Vaquero
El Vaquero's picture

You're seeing the price of oil without the "owners" of the fields having to do any maintenence on the equipment, without having to pay taxes to a state governement, without having to do any upstream spending for future production and without having to pay shareholders.  If we were to just back off, we'd see ISIS lose its capacity to produce oil without anybody doing anything.

Mon, 09/15/2014 - 14:40 | 5219417 hobopants
hobopants's picture

Question is are they moving enough of the stuff to explain the drop in price?

Mon, 09/15/2014 - 14:47 | 5219458 El Vaquero
El Vaquero's picture

Probably not a lot.  That shit's traded in paper.  Until the paper pushers do something that breaks production, they can manipulate the price however they want.


What'll be interesting to see, if their production starts to falter, is if they move on Saudi Arabia's oil fields.

Mon, 09/15/2014 - 16:19 | 5219850 Poundsand
Poundsand's picture

I don't think we will have to wait for their production to start to falter before they move on the Saud's. 

It's all a question of timing and dealing with the threat the US poses.  No one else has the capacity to stop them at this point.  Will be interesting to see what happens when they have even the slightest victory against the US.  Will the masses jump on the bandwagon, or remain on the sidelines.  And no, cutting off a reporter's head doesn't count.

Mon, 09/15/2014 - 16:26 | 5219874 cro_maat
cro_maat's picture

The US doesn't pose a threat to ISIS. The bombing raids to come will be on Assad controlled military targets. ISIS is a smoke screen to finally invade Syria.

Mon, 09/15/2014 - 17:03 | 5219973 Poundsand
Poundsand's picture

Obama's not a threat.  The US military is. 

Mon, 09/15/2014 - 14:41 | 5219430 Bangin7GramRocks
Bangin7GramRocks's picture


Mon, 09/15/2014 - 14:11 | 5219309 thunderchief
thunderchief's picture

The things the west will do for oil.

How about an Isis sit down in the white House.

Mon, 09/15/2014 - 14:15 | 5219325 nope-1004
nope-1004's picture

Sit down?  There's an ISIS prez there now, ffs.


Mon, 09/15/2014 - 16:27 | 5219880 cro_maat
cro_maat's picture

You mean John McCain's endorsement wasn't enough?!

Mon, 09/15/2014 - 16:42 | 5219929 XitSam
XitSam's picture

Beer Summit!

Mon, 09/15/2014 - 14:12 | 5219313 FeralSerf
FeralSerf's picture

How is it so different from the Afghanistan opium production and trade?

It's just Company business. And the America military is its body guard.

Follow the money. In whose pockets does the money ultimately end up in?

Mon, 09/15/2014 - 14:04 | 5219267 williambanzai7
williambanzai7's picture

Surprise surprise....not

Mon, 09/15/2014 - 14:05 | 5219270 Four chan
Four chan's picture

pretty organized for a new organization, unless this is all bullshit to get us into another pointless war in the middle east.

Mon, 09/15/2014 - 14:06 | 5219274 Dr. Engali
Dr. Engali's picture

It's funny how they always get the letters CIA mixed up with ISIS in these articles. Are there any editors around here?

Mon, 09/15/2014 - 14:31 | 5219390 El Vaquero
El Vaquero's picture

Or, after creating ISIS, we lost control of them. 

Mon, 09/15/2014 - 14:10 | 5219275 sleigher
sleigher's picture

Israeli Secret Intelligence Service


edit: IF the US and petrodollar is really in the trouble so many think it is, doesn't it stand to reason Israel needs to do something to shore up its own oil supplies?  Money supplies?  whatever?

Mon, 09/15/2014 - 14:42 | 5219433 Flagit
Flagit's picture

I wonder what ISIS is going to call their new petrol-backed currency.

The Sand-dollar?


Uocod's (use our currency or die)

Mon, 09/15/2014 - 16:15 | 5219839 lovemesomeZH
Mon, 09/15/2014 - 14:04 | 5219276 MarsInScorpio
MarsInScorpio's picture



Mon, 09/15/2014 - 14:06 | 5219280 pan
pan's picture

They were for buying oil from ISIS before they were against it.

Mon, 09/15/2014 - 14:42 | 5219432 Osmium
Osmium's picture

That and "First we have to buy the oil to know who is selling it".

Mon, 09/15/2014 - 14:05 | 5219285 DCon
DCon's picture

BERLIN: Germany said Friday it had prohibited activities in support of ISIS, warning the "terrorist" group operating in Iraq and Syria also posed a threat to Europe.

Interior Minister Thomas de Maiziere said the immediate ban included the recruitment of jihadist fighters, the public display of ISIS symbols and signs and social media propaganda.

Read more:
(The Daily Star :: Lebanon News ::

Is buying oil considered support?

Mon, 09/15/2014 - 14:27 | 5219371 knukles
knukles's picture

No.  Buying oil is Not Support for ISIS.
Because your minions cannot go cold or be immobilized.
They get mad.
Cast you out of the Honeycomb.

But recruiting for ISIS or hanging signs are serious measures which will bring them to their knees

Mon, 09/15/2014 - 14:06 | 5219287 Winston Churchill
Winston Churchill's picture

What a cluster.Farce at its best.

Mon, 09/15/2014 - 14:06 | 5219289 trigasux
trigasux's picture

Does this mean traditional oil prices will have to compete?

Mon, 09/15/2014 - 14:07 | 5219293 astoriajoe
astoriajoe's picture

which country has the lowest refining margins?

Do NOT follow this link or you will be banned from the site!