Lower oil price cuts IS income by one third

Revenue for the ultra-hardline Sunni Muslim group, fell to $56 million a month in March from around $80 million a month in the middle of last year, the analysis company IHS said. 

Daily oil output dropped to 21,000 barrels from 33,000 barrels over the same time frame, as production facilities suffered damage from air strikes carried out by a US-led coalition. “Islamic State is still a force in the region, but this drop in revenue will increase the challenge for the group to run its territory in the long term,” said IHS senior analyst Ludovico Carlino. 

The territory under its control has declined by about 22 percent since mid-2014, while the population of there has fallen to around 6 million from 9 million. “There are fewer people and business activities to tax; the same applies to properties and land to confiscate,” said senior analyst Columb Strack.