The potential for disruption by ISIS in the region seems to be ignored by oil traders, with oil continuing at sub-$80 a barrel levels. This does not necessarily mean that the Western powers are seen to have the ISIS situation under control, but that there are other factors at play. The burgeoning success of shale oil extraction means that supply from the U.S. is now outstripping that coming from politically riskier countries like Iraq, Iran, Syria and Libya. Which side to pick? One of the real problems for the U.S. and its allies is which of the competing groups to back in the fight against ISIS. In Syria, the regime of President Bashar al-Assad, ISIS, and a number of more moderate armed opposition groups, are all competing for territorial control. Iraqs Kurdistan Regional Government (KRG) has taken the opportunity to try and push for greater independence from Baghdad - and even a fully independent state. It now controls Kirkuk, an oil-rich province whose ownership has been disputed for many years. The turbulent history of disputes between Sunni and Shiite Muslims in Iraq, which Western intervention was unable to resolve and ISIS was able to exploit, is unlikely to be resolved soon either. All this suggests the U.S.s plan to degrade and ultimately destroy ISIS is far from fulfilment. - By CNBCs Catherine Boyle finance.yahoo/news/isis-trouble-could-mean-oil-122917310.html
Posted on: Fri, 21 Nov 2014 06:34:25 +0000