History of crisis in Iraq

Current crisis
ISIS (Islamic State of Iraq and Syria, Levant)
Causes of crisis
Internal Factors
External Factors

Limited Production of oil
Shutdown of Refineries
Less exports
Battle for Resources and expense of National Defense
Budget Crisis
Kurdish occupied oilfields
Delay in contractual development of Oilfields.


Economic Issues
Rising import bill of Crude oil.
Increased strain on Government Expenditure.
Strain on weak rupee.
Depletion of Forex Reserves.
Infaltionary impact.


Impact on OPEC (Oil and Petroleum Exporting Countries).
Rule of Thumb.
Impact on Europe
Hampering of Recovery
Impact on America
Somewhat Insulated



Pre 2003 and post 2011 Production capacity.
Volatility of oil prices.
Impact on Crude Benchmark.
Brent Crude
Dubai Crude
Oman Crude
West Texas Intermediate (WTI)
Curtailed Crude Supplies.



Jan 2014 104.19 -3.47 %
Feb 2014 104.94 0.72 %
Mar 2014 104.15 -0.75 %
Apr 2014 104.78 0.60 %
May 2014 105.51 0.70 %
Jun 2014 108.01 2.37 %
Market impacts of stress on oil prices.
Commodities
Bonds
Equities
Cross asset

Market Complacency
Reasons for Less then ascertained impact.
Increased Production in U.S.A.
Recovery in Europe