Iraq Seeks Higher OPEC Quota as Revenue Pressures Mount

Iraq's push for a higher OPEC production quota is driven by revenue pressures and new oil investment, according to an economic crisis caused by the Iran war. The conflict has forced huge export cuts, aggravating discord among OPEC's core Gulf members.

The war's impact on Iraq has been severe, with oil proceeds accounting for 88% of state revenues last year. With a potential loosening of quota restraints and multi-billion-dollar deals signed with oil majors like BP, TotalEnergies, ExxonMobil, and Chevron, some experts question whether Iraq can overcome massive infrastructure requirements and execution risks to realize its ambitions.

Iraq has the capacity to produce 4.9 million barrels per day and could reach that level in 90 days, over 500,000 bpd more than its current OPEC quota of 4.378 million bpd. The country is targeting production of 7 million bpd in the coming years, but previous plans have faced delays and obstacles.

Prime Minister Ali Faleh al-Zaidi has signaled that rebuilding Iraq's economy and attracting foreign investment will be central to his agenda. With U.S. backing, he will visit Washington in mid-July and stated that U.S. companies interested in business in Iraq will receive top priority.