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Re: Gulf tension fuels oil price rise

The following article on the BBC website links the oil crisis with the 
Iraq issue and says that Iraq may gain some bargaining power from it.

best wishes,
Eleanor Coghill

An extract:

"There is also an underlying longer term concern in the market about 
Iraq's attitude to United Nations sanctions. Under a UN deal, it is
allowed to export a certain amount of oil and use the revenue to pay
reparations to Kuwait and to buy food and medicines for Iraq. 

Baghdad is not happy with the deal, and it could maximise its bargaining
power during the coming months by threatening to withhold oil. 

This would be a substantial threat. Iraq is now producing around three
million barrels a day of crude oil. That makes it the third biggest
supplier in OPEC, the 11-member oil producers' cartel. 

Iraqi production is roughly the same as the total increases that OPEC has
agreed over the course of the year in an attempt to meet demand and bring
prices down. 

If, in the middle of the northern winter, Iraq were to withhold its oil
supplies - or even hint at it - that could have a dramatic effect on the

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