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Experts: Low Oil Prices Won't Bankrupt ISIS

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Experts: Low Oil Prices Won't Bankrupt ISIS

It has been widely documented that ISIS funds its activities through oil sales. However, the terrorist group is unlikely to feel the pinch from low oil prices, according to several experts.

Speaking to CNBC, Eurasia Group's President Ian Bremmer noted that a collapse in oil prices could "delegitimize" some of the gulf monarchies and that low oil prices is "actually a plus" for the terror group.

Thomas Creal, a forensic accountant, also told CNBC that there is no one main source of financing that ISIS relies in. In fact, the terrorist group also receives financing from wealthy donors, foreign fighters who arrive with cash on them, taxation, extortion, and sales of stolen assets.

Finally, Dan Karson of the risk consulting firm Kroll suggested that oil operations are valuable to ISIS on a short-term basis only as it generates a source of immediate cash flow. He continued that over the longer term, oil is merely a "bonus to their operations" when factoring in the many other sources of revenue.

 

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