US oil firms have drastically cut imports of Iraq oil over the past five months contributing to a steep decline in Baghdad's exports, The Washington Post reported yesterday.

The newspaper said a United Nations expert told a Security Council committee on Monday that US imports of Iraqi crude have dropped from about 1 million barrels a day five months ago to between 100,000 and 200,000 barrels a day.

US and UN officials estimated the reduction amounts to as much as $20 million a day, the paper said. The Post cited US diplomats and industry analysts as saying that US oil companies have cooled on the Iraqi market because of Baghdad's demands for kickbacks and because of the Iraqi oil pricing policy that makes it impossible for traders to know what price they will pay for a barrel of oil until after they take possession.

The Post said the US oil firms' retreat from the Iraq oil market may also mean they are looking for alternative sources of crude in the event of US military action against Iraq.

"If you think that within the next eight months this significant source of crude oil may suddenly be out of reach, you will want to develop alternative sources," said James Placke, a former US diplomat and specialist on the Iraqi oil industry.

The Bush administration has been weighing options for achieving its stated goal of a "regime change" in Iraq, including a military attack against Iraqi President Saddam Hussein.