Iraq Eyes Oil Production Surge as OPEC Quota Hurdle Looms

Iraq's Prime Minister Ali al-Zaidi has announced plans to more than double the country's oil production within six years. The target is to reach between 8 million and 10 million barrels per day, up from around 4 million bpd before the Iran war.

This ambitious goal requires OPEC to grant Iraq a higher production quota, which could be approved once DeGolyer and MacNaughton submits its findings on maximum sustainable production capacity by the end of September. OPEC+ has hired this consultancy to independently assess the production capabilities of its members, including Iraq.

However, even if Iraq secures a higher quota, it will face significant infrastructure challenges in increasing exports. The country's primary crude export route, the Strait of Hormuz, remains closed due to Iran's effective blockade, and traffic through this chokepoint is still below pre-war levels.