Iraq said Sunday it would only resume oil exports under a regular six-month renewal of the UN oil-for-food program, after rejecting a one-month extension decided by the Security Council, reported AFP.
Iraq, which has said it will stop pumping oil under the program starting Monday, "will not resume exports unless the oil-for-food is renewed for six months," Oil Minister Amer Al Rashid told a press conference.
The minister also demanded that the renewal should not be "linked to the US-British project" to impose a system of "smart" sanctions to modify the embargo in force since Iraq's 1990 invasion of Kuwait.
Iraq announced the halt in oil exports on Saturday, rejecting the UN's one-month extension of the oil-for-food program as it battles to head off smart sanctions.
The United States on Saturday demanded Iraq live up to its UN commitments and said it would act to prevent shortfalls after Iraq’s announcement.
"The US remains in close contact with major oil producers and with international energy agency member countries. We are prepared to ensure an adequate oil supply response," State Department spokeswoman Eliza Koch said.
She said Iraq should live up to a 1996 memorandum of understanding which launched the UN's oil-for-food program.
Saudi Arabia stepped in swiftly with an offer to compensate for any shortfall on the world market.
The decision to suspend exports came a day after the UN Security Council extended the program by one month to give the 15-member organization more time to reform the 11-year-old sanctions regime against Baghdad.
Turkey's state-run BOTAS pipeline company said that Iraq had stopped pumping crude oil before dawn Saturday.
Iraq produces about 3.2 million barrels of oil per day, of which about 2 million barrels per day has been exported under the oil-for-food program. It has the world's second-largest oil reserves.
In Saudi Arabia, Naimi said OPEC would cover any shortfall.
"In case there is a cut in supplies, for any reason, be it political or as a result of a natural disaster, we work for stability in the market, a balance between supply and demand and a stable price for the interests of consumers and producers," Naimi said.
Meanwhile, an oil official told the Washington Post newspaper that "contacts were underway between oil ministers from OPEC members Saudi Arabia, Venezuela, Iran, Kuwait and the United Arab Emirates to address the Iraqi decision." - Albawaba.com
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