The United States on Saturday demanded Iraq live up to its UN commitments and said it would act to prevent shortfalls after Baghdad announced a halt in oil exports, reported AFP.
"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.
Earlier Saturday, Iraq announced a halt in oil exports starting Monday as it battles to head off British and US proposals for "smart" sanctions.
The timing coincides with the end of the current phase of the program and will wipe around 2.2 million barrels per day off the world oil market.
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.
Iraq had warned in advance it would reject an extension of the program, which allows Baghdad to export crude under UN supervision to finance imports of humanitarian goods, opting instead for a new six-month term.
Iraq's oil ministry blamed for the suspension the Security Council's failure "to respect, in spirit or in letter," the 1996 memorandum.
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 will 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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