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UN, Iraq Discussing Oil Prices for December
The United Nations and Iraq are discussing a possible compromise to the row over oil prices for December, Saeed Hasan, Iraq's ambassador to the UN, said Monday, December 4.
Speaking to the press, Hasan said "they are discussing a possible compromise."
Hasan said the discussions are ongoing between Iraq's State Oil Market Organization and the UN's oil advisors, the so-called oil overseers.
The ambassador said the two sides are between five cents and 20 cents per barrel away from bridging the gap between what Iraq wants and what the overseers see as fair oil prices.
Iraq, which halted oil exports Friday, proposed last week the pricing formula of exporting oil for December. It also asked its customers to pay a 50 cent per barrel surcharge in December to go direct to an Iraqi account not controlled by the United Nations.
The United Nations sanctions committee on Iraq rejected the proposed pricing formula, saying that it was too low and did not reflect a fair market value. It also asked Iraq to propose a new and fair pricing formula for its consideration.
The United Nations monitors Iraqi oil sales under sanctions stemming from Iraq's invasion of Kuwait in 1990. The UN must approve Iraq's pricing plan before exports can go ahead.
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