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CNN Live Today

Iraqi Oil Will be Flowing Once Again This Week

Aired May 06, 2002 - 10:40   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: So much for making a political statement. Iraqi oil will be flowing once again this week. Iraqi President Saddam Hussein has announced the end of a thirty-day oil embargo against the United States.

Our Nic Robertson has that story.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): Gathering his cabinet for the announcement broadcast on Iraqi TV, President Saddam Hussein looked relaxed. The country's month-long suspension of his oil exports to end Tuesday night, he told them. Exports estimated at two million barrels a day were put on hold by the Iraqi leader four weeks ago, to show solidarity with the Palestinians. U.N. experts estimate the cost to Iraq at $1 1/2 billion dollars, money in the form of credit it trades for goods under the U.N. oil-for-food program.

In the more affluent suburbs of Baghdad, we found a parent support the president's backing of the Palestinians.

"It's not easy to do it," this goldsmith say, "but we do it for the Palestinians."

Here and in poorer neighborhoods, the benefits of the food for oil program over the last 5 1/2 years have had an impact.

UNIDENTIFIED MALE: New cars.

ROBERTSON: And in transportation generally. In the roads, in the municipality, things are better, this pharmacist says.

With the availability of goods, there is pressure for the government to ensure the economy remains stable.

UNIDENTIFIED FEMALE: What the government tries to do, life is going to be expensive more and more and more, because new things come. And when new things came, the needs are more.

ROBERTSON: Her complaint, salary increases not keeping pace with the prices of the new, imported goods.

Iraqi officials had hoped to broaden their campaign against Israel and the United States by calling on other Arab nations to cut their oil production, too. None did. And Saudi Arabia's offer to make up the shortfall causes by Iraq's stoppage not well received here.

UNIDENTIFIED MALE: Anyone increase production any way, it's like putting a knife in the back of the Palestinian people. And no one will dare to that.

ROBERTSON: Some oil experts say if Iraq had continued with it's oil blockage, production would have been slow to restart, hurting the country's ability to withstand the economic impact of its self-imposed stoppage.

As Iraq's primary oil storage facilities are full, when the tap is turned on Wednesday morning, oil will likely begin to flow quickly into the waiting tankers.

Nic Robertson. CNN, Baghdad.

(END VIDEOTAPE)

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