WASHINGTON, August 6, 2008 (AFP) - Iraq is amassing a huge budget surplus of soaring oil export revenues, but is spending little on reconstruction, for which the United States is bearing the financial burden, a US government report said.

KUWAIT CITY, August 6, 2008 (AFP) - Kuwait's foreign minister said on Wednesday that an Iranian threat to close the Strait of Hormuz, the crucial Gulf oil supply route, amounted to a 'punishment' of its Arab neighbours.

LONDON, August 6, 2008 (AFP) - World oil prices rebounded somewhat on Wednesday as traders awaited a weekly US crude stockpiles report that could shed fresh light on the strength of global energy demand.

Brent North Sea crude for September delivery added 65 cents to 118.35 dollars per barrel in electronic trading.

VIENNA, August 6, 2008 (AFP) - Austrian oil and gas giant OMV finally threw in the towel on Wednesday in a long battle to buy Hungarian rival MOL, announcing it was withdrawing its bid in the face of EU opposition to the deal.

A merger would have created one of Europe's biggest oil and gas groups, with an estimated capitalisation of 27 billion euros.

BUDAPEST, August 6, 2008 (AFP) - Hungarian oil and gas giant MOL welcomed on Wednesday a decision by Austrian rival OMV to drop its long-running takeover bid, but MOL's shares nosedived on the Budapest stock exchange.

Ever since OMV launched its bid for MOL last September, the Hungarian group has consistently rejected the approach as hostile.

LAGOS, August 6, 2008 (AFP) - US oil group Chevron has started production at a new offshore oil field in Nigeria and the site is expected to yield 250,000 barrels of oil and gas per day by next year, the company said on Wednesday.

The company said its Nigerian affiliate, Star Deep Water Petroleum Limited, started crude oil production from the Agbami field on July 29.

VIENNA, August 6, 2008 (AFP) - Austrian oil and gas giant OMV finally ceded defeat Wednesday in a long battle to buy Hungarian rival MOL, announcing it was withdrawing its bid in the face of EU opposition to the deal.

LONDON, August 6, 2008 (AFP) - World oil prices remained weak on Wednesday as traders awaited the weekly US crude stockpiles report that could shed fresh light on the strength of global energy demand.

Brent North Sea crude for September delivery firmed five cents to 117.75 dollars per barrel in electronic trading.

VIENNA, August 6, 2008 (AFP) - Austrian oil and gas giant OMV reported on Wednesday a record net profit of 1.13 billion euros (1.748 billion dollars) in the first half of 2008, up 52 percent from the equivalent figure last year as oil prices remained high despite a weak dollar.

Most analysts had forecast a 36-percent rise in profit.

VIENNA, August 6, 2008 (AFP) - Austrian oil and gas group OMV withdrew a controversial takeover bid for MOL of Hungary on Wednesday after EU officials objected to the effects of the resulting group on competition in central Europe.