Iraq Predicts Crisis in Oil Market If Exports Cut
Oil Ministry Senior Undersecretary Taha Humud Musa, quoted by ****Ittehad**** newspaper, said it was unlikely that Saudi Arabia would be able fill the void if Baghdad halted its exports.
"We doubt that Saudi Arabia would compensate for Iraqi oil in the case exports were halted. The Saudis might have a production surplus but this is not enough," Musa said.
"We are sure that if Iraqi crude is absent (from the market), there will be a crisis and then we'll see," he said.
Baghdad has threatened to halt oil exports if the UN Security Council adopts the "smart sanctions" proposal of Britain and the United States.
Iraq currently exports about 2.1 million barrels per day.
Washington's aim is to get the resolution adopted before the current six-month phase for the United Nations oil-for-food program expires on June 3.
But with two permanent members of the Security Council -- Russia and China -- balking, an extension of the current phase looks likely.
Iraq wants a simple renewal of the current program. The British-U.S. plan seeks to ease restrictions on civilian goods going to Iraq but also to crackdown on oil smuggling.
OPEC kingpin Saudi Arabia has said that it and other OPEC members would step in and fill any serious supply gaps created by a break in Iraqi exports.
An Iraqi oil official said on Sunday Iraqi Oil Minister Amir Muhammed Rasheed and top oil officials were due to attend OPEC's June 5-6 output strategy meeting in Vienna.
Meanwhile, Iraq accused Kuwait Sunday of trying to steal oil from jointly owned deposits inside a UN-monitored demilitarized zone on the border.
"Kuwait is continuing its works close to the border with Iraq to steal oil from the Rumaila-south oil field," Mussa, said.
"These schemes are not correct and they (the Kuwaitis) do not have the right to continue such operations close to the Iraqi border," Mussa said.
Iraq regularly accuses Kuwait of pumping oil from the demilitarized zone set up by the United Nations after the 1991 Persian Gulf War that evicted Iraqi occupation forces, a charge the emirate categorically denies, AFP reported.
Iraq occupied Kuwait for seven months between 1990 and 1991 before its ouster.
Meanwhile, Iraq accused Kuwait Sunday of trying to steal oil from jointly owned deposits inside a UN-monitored demilitarised zone on the border.
"Kuwait is continuing its works close to the border with Iraq to steal oil from the Rumaila-south oilfield," Mussa, said.
"These schemes are not correct and they (the Kuwaitis) do not have the right to continue such operations close to the Iraqi border," Mussa said.
Iraq regularly accuses Kuwait of pumping oil from the demilitarised zone set up by the United Nations after the 1991 Persian Gulf war that evicted Iraqi occupation forces, a charge the emirate categorically denies, AFP reported.
Iraq occupied Kuwait for seven months between 1990 and 1991 before its ouster.