The international crude price slips 1.7 percent to below $70 per barrel owing to the death of the dreaded al-Qaida leader Abu Musab al-Zarqawi in Iraq. The crude supply from Iraq had been restrained due to the frequent attacks and instability, but the death of Zarqawi has very distant chances to assure that there would be regional stability. However, for the time being, the price has been surely eased.



Oil export from the war-torn country has failed to return to pre-war level because of the frequent damage caused by attacks on the northern pipeline. In fact, U.S. and allied forces have so far failed to provide security cover to the interior regions of the country and that prevented the much-required investment in the ageing southern oil fields.



The fall in price may be short lived as the Iran standoff and Nigerian oil crisis are not showing any sign of ease as for the moment.



Iraq has announced that it would produce 4.3 millions barrels per day of crude by the year 2010 that stands more than double its present level of production. However, this target seems to be too ambitious to be realized. Iraq is still struggling to produce two million barrels in a day whereas it was producing 2.5 million barrels per day in the pre-war condition.



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