The New York Times reported over the weekend that at least one-third of fuel from Iraq’s largest refinery is being diverted to the black market.  The proceeds from the sale are being used to support in insurgency against American troops.

From the New York Times:

The sea of oil under Iraq is supposed to rebuild the nation, then make it prosper. But at least one-third, and possibly much more, of the fuel from Iraq’s largest refinery here is diverted to the black market, according to American military officials. Tankers are hijacked, drivers are bribed, papers are forged and meters are manipulated — and some of the earnings go to insurgents who are still killing more than 100 Iraqis a week.

“It’s the money pit of the insurgency,” said Capt. Joe Da Silva, who commands several platoons stationed at the refinery.

Five years after the war in Iraq began, the insurgency remains a lethal force. The steady flow of cash is one reason, even as the American troop buildup and the recruitment of former insurgents to American-backed militias have helped push the number of attacks down to 2005 levels.

Up to $4 billion in gas and oil is smuggled and sold on the Iraq Black Market.

Globally, gas and oil smuggling is a $5.2 billion market.