Iraq in flames again, rebounding oil industry threatened

|By:, SA News Editor

Iraq is descending into chaos, as Mosul, Iraq’s second largest city, has fallen to militants, and reports have them driving into the town of Baiji, home to Iraq’s largest oil refinery.

The country's oil minister claims Iraq’s oil-producing south is secure and oil exports are unaffected, but the main export pipeline to the Mediterranean runs past Mosul and already has been sabotaged more than 50 times this year.

Although the insurgency hasn’t spread to Iraq’s Kurdistan region, the conflict has the potential to nip its oil export industry in the bud.

It's also another worry for OPEC ministers, who are already struggling to compensate for lost Libyan crude, while Iran is still hobbled by Western sanctions.

ETFs: USO, OIL, UCO, SCO, DTO, BNO, DBO, CRUD, USL, UWTI, DWTI, DNO, SZO, OLO, OLEM