Iraq has requested Saudi Arabia to review OPEC quotas, aiming to increase oil production to 8–10 million barrels per day within six years. Currently, the country produces about 4 million barrels, with future decisions dependent on the results of an independent audit of the organization members' capacities.
This was reported by Delo.ua citing Reuters, according to the portal PromPolitInform.
A process to evaluate the maximum capacities of OPEC+ member countries is currently being conducted by the audit firm DeGolyer and MacNaughton. Expert findings are expected to be presented at the end of September, after which discussions on new production baselines for the period starting in 2027 will commence.
The struggle for oil quotas
Setting a higher baseline allows for a larger production quota, which traditionally triggers fierce competition among OPEC+ members. Simultaneously, Iraq faces logistical challenges due to the blockade of the Strait of Hormuz, necessitating the diversification of supply routes.
Authorities are evaluating options to expand exports via the Turkish port of Ceyhan, as well as launching routes to Baniyas in Syria and Aqaba in Jordan. Specifically, the construction of an oil pipeline to Syria may take about four years and cost at least $15 billion, while the only currently operational pipeline is the Turkish route with a transport volume of about 170,000 barrels per day.
Global market risks
Iraq’s attempt to double its production undermines the unity of OPEC+ and threatens a collapse in oil prices in the long term. However, due to the lengthy construction of new pipelines and ongoing regional security constraints, there will be no immediate surplus of raw materials on the market.
Photo: Depositphotos
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