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Iran is to supply neighbouring Iraq with 2 million litres of oil products as winter fuel sold at a price related to published assessments basis the Gulf in a two-month contract, the semi-official Mehr news agency said on Friday.
"Based on the contract, Iran is selling 2 million litres of white oil to supply winter fuel to Iraq," the agency quoted the managing director of the Iranian state company for distributing oil products, Zia Kashani, as saying.
"This will be sold at the price of Persian Gulf oil FOB," he said. Iran has been supplying Iraq with oil products since after the 2003 war. The agency did not say if the shipments were in an increase of supply.

Copyright Reuters, 2006

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