Britain has temporarily lifted an objection which prevented the UN from setting an official price for Iraqi oil, allowing sales to resume under normal conditions until the end of August, diplomats said Friday, August 24.
But, a British diplomat said, it would agree to an official price for September only if the price-setting interval were cut from 30 days to 15 days.
Iraq has been without an official price since Tuesday, after Britain called for more frequent price-setting so as to limit Iraq's ability to exploit fluctuations in the world market.
UN officials said the lack of an official price had no immediate effect on Iraqi oil exports under UN supervision, but traders could be put off if uncertainty over the price persisted.
Iraq, which has been subject to sanctions since it invaded Kuwait in August 1990, is allowed to sell oil under United Nations supervision, and to use 72 percent of the revenue to import food and other necessities approved by the UN.
At present, it sells about 2.0 million barrels a day, a volume large enough to cause severe disruption to the world market if supplies were halted. —(AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)
