The United States and Britain are deliberately trying to choke Iraqi oil sales under the UN oil-for-food deal by overpricing the crude, an Iraqi oil official said today.
He said the two countries are UN oil overseers who set monthly prices for Iraqi crude to inflate levels and drive away business - especially in the United States, Baghdad's single biggest customer.
"The motive is very clear," the official said. "The United States and Britain are pressuring the oil overseers to set high prices so our customers have a very difficult time".
Iraqi oil sales to the United States have plunged to 300,000 barrels per day (bpd) from 800,000 bpd last year - a decline traders link in part to uncompetitive prices set by the UN.
Levels are set to shrivel further as Iraq and its customers say prices set for US-bound shipments in July have pegged the crude far above current market value.
The UN routinely delays approval for Iraqi oil prices until after barrels load in a bid to ensure levels are not set below market value - a tactic designed to thwart Baghdad's illicit surcharge on oil sales.
The ongoing pricing dispute has knocked down total exports of Iraqi crude to 1.2 million bpd this year. Reduced exports have created a $2.2 billion shortfall in UN-controlled humanitarian funds under the oil-for-food deal, introduced in 1996 to help ease hardships on ordinary Iraqis.