Washington has reportedly concluded an arrangement with Riyadh, under which the Saudis have committed to hike oil supply in case war breaks in Iraq and sends crude prices soaring, Japan's Mainichi Shimbun newspaper reported.
Seeking to allay economic concerns ahead of a looming military showdown in Iraq, the US obtained a Saudi assurance that the oil-rich kingdom will either increase its output to offset a price surge, or would get its 11 fellow members in the Organization of Petroleum Exporting Countries (OPEC) to take joint action.
A conference of oil experts at the Washington-based Center for Strategic and International Studies (CSIS) concluded last month that a worst case scenario could see international oil prices climb to $80 per barrel in the aftermath of an American military strike on Iraq.
Last week, the Secretary of State Colin Powell stated that the US intends to safeguard the Iraqi oilfields in case Saddam tries to wreck havoc on his way out the door, as the Iraqis have done upon their withdrawal from Kuwait in 1991. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
