Iraq Seeks Higher OPEC Quota Amid Economic Pressures

Iraq is pushing for a higher OPEC production quota due to economic pressures caused by the Iran war and new oil investment, potentially putting it at odds with the producer bloc.

The conflict forced huge export cuts, causing Iraq's economy to take a significant hit as oil proceeds accounted for 88% of state revenues. An Iraqi energy adviser said the demand for a larger OPEC quota is 'primarily a response to mounting economic pressures.'

Iraq has considered leaving OPEC if its quota is not increased, but Prime Minister Ali Faleh al-Zaidi stated that such a move had not been discussed.

New oil deals with majors like BP and TotalEnergies could help Iraq replenish its coffers, but the country still faces massive infrastructure requirements and lingering execution risks to realize its ambitions.