Iraq considers options if OPEC quota not increased

Iraq will consider all available options if its OPEC quota is not significantly increased and has weighed leaving the producer group, Reuters has learnt.

The prospect of OPEC’s second-largest producer considering an exit would be a further blow to the group after the departure this year of the United Arab Emirates.

Iraq is suffering a financial crisis as a result of the Iran war and a significant rise in its OPEC quota should be treated seriously, a senior Iraqi oil ministry official told Reuters.

Iraq had considered leaving OPEC, but the current plan was to remain a member and seek a higher quota, he added.

‘OPEC did not immediately respond to a request for comment.’

‘A government spokesperson said Iraq was working to restore full oil export capacity, but declined to comment further on its OPEC quota or the possibility of exiting the group.’

‘Iraq is working to restore its full oil export capacity and aims to raise oil production to seven million barrels per day over the coming years,’ Iraqi spokesperson Haider al Aboudi said.

Iraq’s economy, heavily dependent on oil revenue, has been squeezed since the Iran war disruptions to the Strait of Hormuz locked the bulk of its exports in.

‘Oil prices briefly extended their decline after the Reuters report, trading below $73 a barrel.’

‘Since taking office in May, Iraqi Prime Minister Ali al-Zaidi has signaled that rebuilding Iraq’s economy, attracting foreign investment and combating corruption will be central to his administration’s agenda.’

‘On Wednesday, he said Iraq wanted OPEC to raise Iraqi oil output in line with its production capacity and population, state news agency INA reported.’

‘Seven core members of OPEC+ have increased their output quotas from April to June by almost 600,000 barrels per day. OPEC+ comprises the Organisation of the Petroleum Exporting Countries and allied producers, including Russia.’