Iraq requests quota review as OPEC restores production

The Iraqi Ministry of Petroleum reported this Friday (27) that OPEC (Organization of Petroleum Exporting Countries) has begun to gradually restore Iraq's pre-war production quotas, a measure that the ministry says will strengthen the country's production capacity and support the recovery of its oil sector.

In a statement carried by the state news agency, the ministry said Baghdad supported a reassessment of OPEC production quotas to better reflect conditions in member states, including Iraq's economic and security situation.

Iraqi Prime Minister Ali Faleh al-Zaidi had not discussed the possibility of Iraq leaving OPEC, the statement added.

On Thursday, knowledgeable sources told Reuters that Iraq, OPEC's second-largest producer after Saudi Arabia and one of its five founding members, considered leaving the group if the organization does not allow Baghdad to significantly increase oil production.

Such a prospect would be a severe blow to the Organization of Petroleum Exporting Countries, which saw the United Arab Emirates withdraw less than two months ago.

The country depends on oil for most of its revenue, which has seen a drastic drop since the war with Iran effectively blocked exports through the Strait of Hormuz.

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Later on Thursday, Iraq's Oil Ministry said news suggesting that Baghdad was considering ending its membership in OPEC did not reflect the Iraqi government's official position.

Iraq's quota for July is 4.378 million barrels per day, although current production is significantly below this figure due to disruption in the Strait of Hormuz.

Source: CNN