While clouds of war thicken over the Arabian Gulf, Iraqi oil trade is booming. The beleaguered nation has seen its exports hit a four-week high in February-end, with UN oil monitors approving five new oil purchase contracts. Iraq’s largest customer was, as usual, the United States, taking 56 percent of Iraq's authorized output.
In the last week of February alone Saddam Hussein’s regime earned $370 million by exporting 13.2 million barrels of oil at an average price of $28.70 per barrel, according to the latest figures released by the UN's Office of the Iraq Program.
The outlook for March seems far less positive, as crude oil exporters grow increasingly anxious ahead of an anticipated US strike on Iraq.
During the week ending February 28, Iraq’s oil exports under the UN Oil-for-Food Program averaged 1.9 million barrels a day, bringing Iraq’s total exports for February to 48.50 million barrels. On average, Iraq exported 4.6 percent more oil per day in February 2003 compared to the previous month.
Under the oil-for-food program, in place since late 1996, proceeds from UN-regulated Iraq oil sales are deposited in an escrow account and used to purchase humanitarian supplies, particularly food and medicine as well as to cover Gulf War reparation payments and the cost of UN operations in Iraq.
To date, some $43 billion worth of contracts for humanitarian supplies and equipment have been approved. Supplies and equipment worth almost $26.7 billion have been delivered to Iraq, while another $10.2 billion worth of humanitarian supplies and equipment are in the production and delivery pipeline. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
