The Washington Post says U.S. oil companies have drastically reduced imports of Iraqi oil over the past five months.

The report says the move has contributed to a sharp decline in Baghdad's exports and also has affected Saddam Hussein's ability to transfer money from the U.N.-supervised oil-for-food program. The program allows sanctions-bound Iraq to sell oil to buy humanitarian supplies.

According to the report, U.S. imports of Iraqi crude oil have fallen from about one million barrels a day five months ago to 100,000-200,000 barrels a day. U.S. and United Nations officials estimate the loss of Iraqi oil export revenues amount to as much as $20 million per day.

Experts cite Baghdad's demand for kickbacks and U.N. oil procedures that make it impossible for traders to determine the price of oil before buying it, as the two main reasons American oil companies are slashing imports.

However, analysts say the oil companies may also be seeking alterantive sources of crude oil in the event of U.S. military action to oust Iraqi leader Saddam Hussein.

Source: Reuters, Washington Post, VOA News