An oil refinery in Northern Iraq is still a battlefield. But after three days of fighting, forces loyal to the Iraqi government appear to be holding on. Islamic militants stormed the perimeter Wednesday, threatening national energy supplies.
By late Thursday, the two sides held different parts of the refinery.The Baiji refinery which is about 200 kilometers north of Baghdad refines oil for domestic use. It is also a symbol of the Baghdad government’s powerlessness in the face of a determined insurgency.
Meanwhile, U.S. drivers are now seeing the highest gas prices for this time of year, since 2008. And it may be fairly obvious to Americans that oil prices have a big impact on what they pay at the pump. But that is not the whole picture – oil costs make up only about two-thirds of the retail price of gas.
The cost of refining combined with profit-taking by the oil companies account for 12 per cent. Another 12 per cent is set aside for taxes. The remaining 9 per cent comes from the end of the supply chain – distribution, marketing and retail costs.
CCTV’s Jessica Stone interviews Natalie Joubert, Vice President for Policy at HBW Resources, to talk about Iraq conflict’s impact on the global oil market.