US won't try to lift Iraq sanctions for more oil

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WIRE:03/09/2000 10:26:00 ET US won't try to lift Iraq sanctions to get more oil

WASHINGTON (Reuters) - Washington will not seek to end economic sanctions against Iraq in order to get additional oil supplies on the world market, U.S. Energy Secretary Bill Richardson said on Thursday. "We're not going to lift the sanctions based on that," Richardson told members of the Senate Armed Services subcommittee when asked if the United States would try to increase oil output to ease current high prices. Separately, Richardson said the United States welcomed Iran's apparent change in policy on additional oil supplies but insisted that the Clinton administration was not promising Tehran anything in return. On Wednesday, OPEC price hawk Iran indicated it would go along with a cartel decision to raise production and ease the current world supply squeeze.

"There is no quid pro quo on our part," Richardson told the senate panel.

Despite Iran's change of heart, some other OPEC producers have not yet indicated if they will back an output increase endorsed by OPEC heavyweights Saudi Arabia and Venezuela, Richardson said. He said Washington will continue diplomatic overtures with those countries, which he did not identify.

Once OPEC raises its oil production, world prices should stabilize within about four weeks as the additional supplies arrive in the market, Richardson said. "Our hope is there will be stability after oil moves into the market," he said.

Washington expects a "sizable" increase in OPEC oil production after the cartel meets on March 27, Richardson said, but did not elaborate.

http://abcnews.go.com/wire/World/reuters20000309_1690.html

-- Martin Thompson (mthom1927@aol.com), March 09, 2000


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