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Iraq resumes oil exports

Special to World Tribune.com
MIDDLE EAST NEWSLINE
Tuesday, December 5, 2000

LONDON — Iraq has backed down from threats to halt oil exports.

Two days after the regime of President Saddam Hussein stopped pumping oil, Baghdad said it will continue to honor contracts already signed under a United Nations program. The UN supervises oil exports.

"The Iraqi oil policy has been always aimed at stability of the world oil market," Oil Minister Amer Mohammed Rashid said. "Iraq has absolutely no intention to terminate or hinder the exports of its crude in the world market."

On Friday, Iraq shut off pipelines to the south and to the Turkish border in protest of a UN rejection of a demand by Baghdad to impose a 50 cent surcharge per barrel of oil. The money -- which would compensate for Baghdad's plans to undercut market prices -- were to have gone directly to Iraq in violation of the UN oil-for-food program.

But Rashid said on Sunday that Iraq will continue to pump oil despite the approaching expiration of the UN program on Tuesday. He indicated that Baghdad would continue to export oil until at least the middle of next month as well as agree to another six-month extension of the UN program.

Iraq exports about 2.3 million barrels a day. Saudi Arabia has pledged to boost output by another 1.8 million barrels per day if necessary. But neighboring Kuwait has held off, saying the market is saturated with oil.

"There is better understanding of our position," Rashid said. "We are optimistic to reach an agreement because we have no intention to hinder oil exports."

Rashid said Iraqi representatives will meet UN officials on Monday to solve the crisis.

Other Iraqi officials said Baghdad would not back down from its demand to set prices. They denied that Iraq will resume the pumping of oil.

"Iraq is free to set crude prices according to its own interests," Deputy Prime Minister Tareq Aziz said.

Tuesday, December 5, 2000


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