UN: Iraq's oil revenues insufficient for people's needs

Iraq's oil revenues are insufficient to the needs of the population which is suffering from the effects of international embargo, said UN Secretary-General Kofi Annan.

In his quarterly report to the Security Council, Annan said the decrease in Iraqi crude prices to less than $10 per barrel, after it was worth $18 a barrel has affected the country's oil receipts.

Last February, the Security Council had agreed to increase Iraq's oil exports to $5.2 billion for each six months to meet the country's needs.

However, Annan's report says, despite the increase, the substantial slump in oil prices has led to a decrease in the projected revenues. He added that Iraq will only gain from its exports $2.8 billion, of which $1.79 billion will be used to buy food, medicine and other emergency goods.