To: diana g who wrote (62905 ) 3/25/2000 8:53:00 AM From: Ken Ludwig Respond to of 95453
A ploy by the wiley Iraqis to keep the production increases low? Iraq Set To Boost Oil Exports A.P. INDEXES: TOP STORIES | NEWS | SPORTS | BUSINESS | TECHNOLOGY | ENTERTAINMENT Filed at 8:22 a.m. EST By The Associated Press BAGHDAD, Iraq (AP) -- In an apparent attempt to grab the initiative from OPEC, senior Oil Ministry officials said today that Iraq will boost exports by about 700,000 barrels a day in the coming few weeks. Word of the plan to increase exports from 1.6 million barrels a day to at least 2.3 million barrels a day comes as major oil producers are gathering in Vienna to review output levels. It is not clear what impact Iraq's move will have on the Organization of the Petroleum Exporting Countries decisions Monday. Ministry officials, speaking on condition of anonymity, did not hide their resentment of what they described as a U.S. policy of ``muscle-twisting' to push OPEC to increase output. Iran's oil minister reiterated that appeal today, urging the cartel not to be intimidated by Washington. ``U.S. pressures are meaningless to us. We hope OPEC members will not give in to political pressures,' Iran's oil minister, Bijan Namdar Zanganeh, told state-run Tehran radio in Vienna. Oil revenues are almost Iraq's sole source of hard cash. The United Nations closely monitors Iraqi oil exports, but Iraq can pump as much as it wants under an adjustment to U.N. sanctions imposed for its 1990 invasion of Kuwait. Washington has been heavily lobbying oil-producing nations to increase supplies to drive down record-high prices that have left American consumers complaining about gasoline and heating oil costs. By substantially raising its exports, Iraq may be hoping OPEC ministers will decide to wait on across-the-board production increases or approve smaller ones than the United States wants. Foreign oil experts have said an additional 2 million to 2.5 million barrels daily are needed to replenish depleted inventories and satisfy growing demand. Early this year, Iraq slashed its exports by 400,000 barrels per day, citing the fragile state of its oil infrastructure. In the past few weeks, it has cut an additional 300,000 barrels a day. Late last year, Iraq was exporting an average of 2.3 million barrels a day. Oil Minister Amer Mohammed Rashid confirmed today in an interview with CNN that Iraq has reversed course. Rashid said the decision to increase exports was prompted by the removal of holds on contracts for the purchase of spare parts and a willingness by the Security Council to double the amount of equipment Iraq can buy to repair its shaky oil industry. The officials said exports will start rising early next and will reach 2.3 million barrels a day in a few weeks. They said Iraq intended to resume production at levels prevalent before the end of 1999, which they put at nearly 3 million barrels a day. Iraq is not part of OPEC's production ceiling, but Rashid has said he will ask OPEC to set a quota for Iraq of no less than 3 million barrels a day. Rashid warned, however, that Iraq will ``be forced to alter its decision' to boost exports if the United States continues placing its contracts on hold.