Last update: Friday, 01-Dec-00 11:44:03.

U.S. Working on Moves to Make Up for Lost Iraqi Oil

WASHINGTON (Reuters) - The United States is working with the International Energy Agency and major oil producers on possible steps, including releasing petroleum reserves, to make up for lost Iraqi oil exports, the White House said on Friday.

Iraq's oil exports ground to a halt on Friday after Baghdad insisted that buyers of its crude pay a surcharge outside the terms of the United Nations oil-for-food program.

``We are working with International Energy Agency members and major oil producers on an oil supply response which, if needed, would more than compensate for the oil volumes which Iraq is threatening to withdraw from the world market,'' U.S. National Security Council spokesman P.J. Crowley told Reuters.

``This would include drawdowns from strategic petroleum stocks as appropriate,'' Crowley added. Asked if he was referring to the U.S. Strategic Petroleum Reserve as well as other oil stockpiles, the spokesman replied: ``Yes.''

The Paris-based International Energy Agency controls emergency oil inventories held among 24 member countries.

http://www.bayarea.com/rc/news/docs/05588961.htm

-- Martin Thompson (mthom1927@aol.com), December 01, 2000