A United Nations spokesman told reporters in New York today that on 22 November, the Iraqi State Oil Marketing Organization had submitted its oil pricing mechanism for the month of December. The UN oil overseers reviewed it that same day and advised the Security Council Sanctions Committee on Iraq that the prices, as submitted by Baghdad, did not represent a fair market value.

"Based on the oil overseers' advice, the Committee has been unable to accept the oil-pricing mechanism for December, as proposed by Iraq," spokesman Fred Eckhard told reporters at UN Headquarters in New York. "The oil overseers have asked Iraq to submit a revised oil pricing mechanism for December that reflects a fair market value," he added.

Meanwhile, the Office of the Iraq Programme, which oversees the UN's oil-for-food scheme, announced today that last week, Iraq exported 16.1 million barrels of oil, earning an estimated $464 million in revenue. Under the oil-for-food programme, a portion of Iraq's oil revenue is used to purchase humanitarian goods.