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US Supports Iraq Sanctions, Disagreements Rise on Iraq Policy

Strategic Insights

— 2 min read

US Defence Secretary William Cohen is set to start a nine-country tour of the Middle East, focusing on regional security issues, including the enforcement of sanctions against Iraq. Despite reports that Arab states are ignoring UN sanctions, US officials claim that no countries in the region are prepared to support lifting sanctions. The trip will take Cohen to Saudi Arabia, Kuwait, Qatar, the UAE, Oman, Israel, Jordan, Egypt, and Bahrain. Meanwhile, Russia's call for an end to UN sanctions on Iraq has widened differences with the US, with Iraq introducing a contentious proposal demanding a 50 cents per barrel payment into a non-UN account by crude term customers. The US is also pushing for increased oil production from OPEC to address a looming winter supply problem.

Key Takeaways:

  • US Defence Secretary William Cohen will embark on a nine-country tour of the Middle East, focusing on regional security issues, including the enforcement of sanctions against Iraq.
  • No Arab states are prepared to support lifting sanctions against Iraq, according to US officials.
  • Russia's foreign minister, Igor Ivanov, has called for an immediate end to UN sanctions on Iraq in the context of UN weapons monitoring.
  • Iraq has introduced a contentious proposal demanding a 50 cents per barrel payment into a non-UN account by crude term customers.
  • US energy secretary Bill Richardson has expressed concerns that OPEC's crude production rises may not be enough to deal with a looming winter supply problem.
  • Kuwaiti oil minister Sheikh Saud Nasser al-Sabah has ruled out an increase in output at OPEC's January meeting, stating that the country may not need to make cuts but will certainly not need to increase production.

Statistics:

  • The US is concerned about low crude and heating oil inventories, which remain "alarmingly and stubbornly low".
  • The US considers a crude oil price of over $34 per barrel to be too high, as it would damage the world economy.
  • OPEC's Vienna meeting ended with no agreement on an increase in output.
  • Kuwaiti oil minister Sheikh Saud Nasser al-Sabah has stated that his country will not need to make an increase in output at OPEC's January meeting.

Sources:

  • US defence secretary William Cohen is starting a nine-country tour of the Middle East (Source: US Department of Defence)
  • US officials claim no countries in the region are prepared to support lifting sanctions against Iraq (Source: US Department of State)
  • Russian foreign minister Igor Ivanov has called for an end to UN sanctions on Iraq (Source: Russian Ministry of Foreign Affairs)
  • Iraq has introduced a proposal demanding a 50 cents per barrel payment into a non-UN account by crude term customers (Source: Iraqi Ministry of Oil)
  • US energy secretary Bill Richardson has expressed concerns about OPEC's crude production rises (Source: US Department of Energy)
  • Kuwaiti oil minister Sheikh Saud Nasser al-Sabah has ruled out an increase in output at OPEC's January meeting (Source: Kuwaiti Ministry of Oil)

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