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To: Mike from La. who wrote (39844)	3/13/1999 5:57:00 PM
From: Crimson Ghost	Respond to of 95453

Iraq wants Saudis to go back to their original quota (pre-Gulf War) 3/13/99 -- 11:11 AM Iraq welcomes oil cut, but says Saudi Arabia should cut much BAGHDAD, Iraq (AP) - Iraqi officials welcomed the decision by major oil producers to cut production by more than 2 million barrels a day, but insisted Saturday that Saudi Arabia reduce output even more. Representatives of Saudi Arabia, Iran, Venezuela and Mexico agreed on the cut Friday after two days of negotiations in the Netherlands. In announcing the move, Saudi Oil Minister Ali Naimi said all members of the Organization of the Petroleum Exporting Countries, except Iraq, were committed to the reduction, as were non-OPEC members Mexico and Oman. Iraqi Oil Minister Lt. Gen. Amer Mohammed Rashid said Saturday that his government supported the step. ''This cut will make a balance between supply and demand and, in the end, will return stability to the oil market,'' Rashid told The Associated Press. But Rashid said once OPEC ministers have formally endorsed the cut at their meeting on March 23, the next step should be to compel the Saudis to reduce their production by ''1.5 to 2 million barrels daily'' in addition to the OPEC cuts. ''It is only fair that Saudi Arabia, after the crisis is over, should go down to 6 or maximum 6.5 million barrels per day,'' the minister said. Currently, Saudi Arabia produces more than 8 million barrels a day. Rashid blamed the market's doldrums on Saudi Arabia, saying prices started falling in November 1997 when OPEC, under Saudi pressure, added another 2.5 million barrels a day to its production total. Iraq, which pumps up to 2.5 million barrels a day, is not bound by OPEC agreements because its production is controlled by the United Nations, which allows it to sell up to $5.2 billion worth of oil every six months on condition that the proceeds are used to pay for food, medicine and other essential supplies. The U.N. restriction is an exemption to the sweeping sanctions imposed on Iraq after its 1990 invasion of Kuwait. Copyright 1999 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.