By John Lee.
Iraq has reportedly cancelled its $2-billion pre-paid oil supply agreement with Zhenhua Oil Company.
Under a deal said to have been agreed in January, the state-owned Chinese company would pay Iraq in advance for a year's supply of oil.
S&P Global Platts reported the following month that Iraq had "frozen" the deal, following an increase in oil prices.
The price of oil has continued to rise, with Iraq confirming an average price of $65.842 per barrel exported in May, considerably higher than the $53.294 per barrel it received in January.
(Source: S&P Global Platts)