Greater competition in global oil markets and other geopolitical factors have led to a free fall in the price of oil over the last 14 months. Oil prices hit a six-year low in early January 2015, and Crude Oil WTI closed at $44.35 by the end of trading on March 13, 2015. Although the falling price of oil could lead to economic growth, it will also create destabilizing political effects in countries with oil-dependent economies.
The fifth and final part of Geopoliticalmonitor.com’s series Cheap Oil and Political Risk will examine Islamic State’s (ISIS) relationship with oil and how the group’s seizure of oil and gas fields, pipelines, and refineries has contributed to making it the wealthiest terrorist organization in history. We will also examine how the slide in oil prices is hindering the ability of the Iraqi government to combat ISIS, and how ISIS is struggling to maintain its oil production amid increasing military and economic pressure.