Russia Not to Increase Oil Supplies After Iraqi Halting of Oil ExportRussia does not plan to increase oil supplies after Iraq halted most oil exports Monday, Russian First Deputy Energy Minister Ivan Matlashov announced Tuesday."The (oil export) volumes set by the government commission will not be enlarged by the end of the quarter. Russia will export no more than in the first quarter this year," Matlashov told the Ekho Moskvy radio station. Matlashov said Iraq's stoppage of oil export will not destabilize the market. "Iraq's daily export amounts to 2.1-2.2 million barrels, which is not so large that it can be compensated by OPEC (the Organization of the Petroleum Exporting Countries) members, if any unbalance symptoms occur," he said. Commenting on reaction of the world market to the Iraqi decision, Matlashov said oil prices have already risen. However, he stressed, this increase will be short-term and soon the prices will return to their previous level - about 28 U.S. dollars per barrel. Iraq suspended most oil exports Monday except to neighboring Turkey and Jordan in protest against a U.N. Security Council decision to extend by one month instead of the usual six months the oil-for-food program. The one-month renewal announced Friday was a stopgap to give council members time to study a British-U.S. plan on so-called " smart sanctions." The proposal, rejected by Baghdad, would allow civilian goods to flow freely into Iraq except goods appearing on a U.S. list that could be used for military purposes. But Iraq wants all sanctions lifted. |
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