State Dept. inspector releases Iraq oil report

WASHINGTON - The Bush administration’s prerogatives for Iraq’s oil evolved from an interest in private investment to ensuring any oil deals signed didn’t harm reconciliation between rival Iraqi leaders, a new report by the State Department’s Inspector General finds.

The report, released Tuesday in response to a July 2008 query by four key U.S. senators, looked into U.S. policies and actions related to the federal Iraqi government’s negotiations with major oil companies as well as the Kurdistan Regional Government’s (KRG) oil deals with Dallas-based Hunt Oil.