Failing that, the United States or the the West's energy watchdog, the International Energy Agency, (IEA) which has stocks of its own, could top up the market, he added. "We do believe that Gulf countries or IEA countries or the United States could make up that shortfall (caused by Iraqi disruption)," Richardson told reporters during a conference of oil producing and consuming nations in the Saudi capital Riyadh.

He added: "I think the first option would be the Gulf states filling in that gap." Iraq has called for a surcharge of 50 cents per barrel and another charge of 1.50 euros per barrel to offset oil production costs. Iraq wants revenue from both charges to be placed in bank accounts outside of UN control. But the UN Iraqi sanctions committee informally agreed that Iraq will not be able to open any bank accounts holding oil revenue, that is outside of United Nations control. Asked about the possibility of Iraq cutting off supplies, if it did not receive the extra surcharges, mr Richardson said: "I would simply say that Iraq should adhere to established norms for doing business with the United Nations and the international community."

(Reuters)