Key facts
- Iraq has requested a significantly higher crude oil production baseline from OPEC leadership.
- Baghdad wants future quotas to be based on a daily production baseline of 6 million barrels.
- This target is substantially higher than Iraq's current production rate of approximately 3.37 million barrels per day.
- Iraq's Prime Minister previously stated a goal to boost oil production to 8-10 million barrels daily within six years.
- The country has faced export challenges due to disruptions at the Strait of Hormuz.
Iraq has formally requested that OPEC leadership significantly increase its crude oil production baseline for future quota allocations, according to sources cited by Bloomberg. Baghdad is seeking a baseline of 6 million barrels per day, a substantial jump from its current output, which averaged approximately 3.37 million barrels daily in August.
This request comes as Iraq's Prime Minister has articulated a long-term vision to elevate the country's oil production to between 8 and 10 million barrels per day within the next six years, despite ongoing war-related disruptions. Prior to recent conflicts, Iraq's production stood at around 4 million barrels daily. The country has previously engaged in negotiations with Saudi Arabia regarding higher baseline quotas.
Iraq's oil exports have been impacted by tensions and closures at the Strait of Hormuz, historically its main export route. While efforts have been made to increase traffic through the chokepoint, levels remain below pre-war figures. Despite these challenges, Iraq has benefited from specific exemptions allowing tankers carrying its crude to pass through Hormuz, leading to a rebound in flows out of the Persian Gulf. However, these disruptions have necessitated substantial discounts to place Iraqi crude with buyers.
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