Iraq's exports fell in late June and early July both because of the transition between the six-month phases in the U.N.-administered oil-for-food programme and Baghdad's delay in signing the eighth-phase oil contracts until after the late June OPEC session, analysts said.The eighth phase of the programme, an easing of the embargo the U.N. Security Council placed on Iraq for its August 2, 1990, invasion of Kuwait, runs from June 9 to December 5.

Iraq averaged a robust 2.57 million bpd for the week ended July 28, the United Nations said. Its sustainable export rate is about 2.4 million bpd, as estimated by oil industry experts.

"After the problems of June and July, the Iraqis are starting to ramp it up again," said Raad Alkadiri, an analyst with the Petroleum Finance Co. "There is no immediate reason why they should slow down."The transition between sales phases "was particularly drawn out this time, not only because of the rollover (between phases) but because of the Iraqis' insistence not to sign any oil contracts until the OPEC meeting. But now, it's business as usual," Alkadiri said.

Unless there were unforeseen political tangles, he said, Iraq was expected to keep exports high until the end of the eighth phase in early December.Larry Goldstein, president of the Petroleum Industry Research Foundation Inc., agreed.

"The impression we get is that the Iraqis are not prepared to play politics," Goldstein said, noting that the 10th anniversary of the start of Iraqi invasion of Kuwait is on Wednesday. "They are selling increasing volumes of oil and seem prepared to continue.

"The average price for Iraq's crude fell 43 cents to $21.50per barrel in the week.The four-week average for Iraq's oil exports was 1.84 million bpd and the average for the eighth phase was 1.88 million bpd, with an average price of $22.85 a barrel. Iraq signed six new oil sales contracts in the week, bringing to 353.3 million barrels the total it has agreed to ship in the eighth phase. Iraq would have to ship at least 2.0 million bpd until early December to meet the shipping demands to which they have already agreed.