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 th…