LONDON. Mar 2: World oil prices staggered lower again as traders took the view that rising supplies would continue to outweigh demand in the gap between the winter heating oil and summer gasoline seasons, says Reuter.

Bellwether North Sea Brent blend by 1600 gmt was down 20 cents at 19.15 dollars a barrel. Brent fell 60 cents on the week, extending a 20 per cent slide from just below 25 dollars in early January.

"I think the market's got the potential to go a lot lower." said Nauman Barakat at brokers prudential bache. "Sentiment is still bearish on heating oil and crude and there's no concern yet about tightness in gasoline."

"Refiners in the US and Europe are in maintenance, the mild weather has hit heating oil demand and gasoline looks ok," said a trader.

Rising Iraqi exports under the United Nations' oil-for-food

exchange remained at the centre of market concerns.

Iraq has signed contracts for half a dozen extra spot cargoes in an effort to make up for a shortfall in revenue from contract sales under the UN deal.

Iraq's State Oil Marketing Organisation (SOMO) on Friday was looking for another to buyer in the oversupplied Mediterranean market, traders said.

Dealers said the Iraqi crude has been sold at discounts to the value fixed by the UN for sales by SOMO making the crude difficult to shift.

The UN is expected to renew the oil sale, designed to offset the impact of sanctions imposed after Iraq's invasion of Kuwaiti, for a second Six

Iraqi Oil Minister' Amir Muhammad Rasheed said on Friday Baghdad would approach the organisation for permission tp increase the 2 billion dollar ceiling.