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Iraq accuses U.S. of overreacting on oil prices

BAGHDAD: Iraq's Oil Minister Amir Muhammed Rasheed on Sunday said the United States was overreacting to a recent rise in oil prices, adding that U.S. comments were "unwarranted".

"We have been accustomed during the last few years before any OPEC meeting, there will be a lot of overreaction and even pressure and threatening to affect the decision of OPEC," he said.

He was referring to the current visit by U.S. Energy Secretary Bill Richardson to key Gulf Arab members of the Organisation of Petroleum Exporting Countries.

Richardson said on Saturday he had won an encouraging response from OPEC powerhouse Saudi Arabia to his request to pump more oil to tame high prices.

"We consider this is unwarranted and unjustified and it is an overreaction by the American administration," Rasheed told reporters after meeting with a visiting Turkish trade and oil delegation.

The OPEC basket price of seven crudes has averaged $25.40 a barrel so far this year with last week's average at $27.30.

Richardson is touring key members of OPEC and some of its allies to urge a rise in output after supply curbs expire at the end of March.

His visit to Saudi Arabia is crucial because the kingdom, a leading supplier to the United States, has significant influence over OPEC and many producers outside the group.

It also comes only few weeks before OPEC ministerial meeting which will be held in Vienna on March 27.

Rasheed said it was "premature to take any decision" on whether to raise OPEC production ceiling or keep it as it was.

"We will meet.discuss the oil market, analyse the market fundamentals.and we will make the right decision," he added.

He said that during the meeting Iraq would ask to be included in OPEC's quota system.

Asked what was the OPEC quota Iraq had in mind, he said: "We will discuss that with our colleagues in OPEC ministerial meeting on March 27," he said.-Reuters