But its latest dispute with the UN over sanctions caused Iraq to say that it would cease production from Monday onwards. Crude oil prices are now at a four-month high. It is these sorts of rises that prompt UK retailers to raise prices at the pump. There is plenty of oil available to supply the international marketplace. Other oil exporting countries could chose to boost their production and make up the shortfall from Iraq.
Some sources say that Saudi Arabia is willing to make up any lack of supply from Iraq.
But other sources say that Opec is more likely to maintain current levels of oil production in order to ensure that wholesale prices do not fall. Any effect from Iraq's decision to halt exports would be cancelled if Opec does agree to raise production. There is also some speculation that Iraq will not really carry out its threat. Crude oil is only one factor influencing the retail price of petrol. Last year, Esso claimed that a retailer makes only about five pence for each litre of unleaded sold for 84p, with 61p going straight to the government in taxes.