BAGHDAD, Iraq (AP) -- Iraq announced Saturday that it will halt oil exports under a U.N.-sponsored program starting Monday to retaliate for a U.N. decision to extend oil-for-food restrictions.
It was not immediately clear whether the decision would affect separate exports to Turkey and Jordan. On Saturday, Iraq stopped pumping oil through a pipeline running to Turkey's Mediterranean coast, but Turkey's Anatolia news agency said officials cited "insufficient production and a drop in stocks" as reason for the halt.
The announcement of the end of oil-for-food exports was made by the official Iraqi News Agency, quoting an Oil Ministry spokesman. The decision will take effect 8 a.m. local time, the agency added.
Iraq's move follows the U.N. Security Council's decision Friday to extend by one month the oil-for-food program under which Iraq exports oil and uses revenues to buy specific humanitarian goods under the international body's supervision.
"Iraq will stop oil exports under the oil-for-food program in light of the noncompliance of the Security Council with the spirit and minutes of the memorandum (oil-for-food program)," the spokesman said.
It was unclear how the loss of Iraqi oil on the market would affect world oil prices. Iraq produces about 3.2 million barrels of oil per day, of which about 2 million barrels per day was exported under the U.N. oil-for-food program. The rest was consumed by Iraq, Turkey and Jordan.
Oil analysts had speculated that other OPEC nations would either adjust official output levels or simply leak more oil onto the market to counteract any rise in prices. Iraq has the world's second-largest oil reserves.
The Security Council's 30-day extension was made to give Washington and London more time to sell their so-called "smart sanctions" proposal to other U.N. Security Council members.
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