Story
Iraq Seeks 6 Million BPD Oil Production Quota in OPEC+ Review, Bloomberg Reports
Summary
Iraq is reportedly pushing for a significant increase in its oil production quota to 6 million barrels per day, a substantial jump from its current ceiling, as the OPEC+ alliance conducts a review of member capacities.
Iraq is seeking a major increase in its OPEC+ oil production quota, requesting that its future output target be based on a capacity of 6 million barrels per day (bpd), according to a Bloomberg report citing people familiar with the matter. The move comes as the producer alliance undertakes a comprehensive review of its members' production capabilities.
The Quota Request
The proposed capacity figure represents a significant increase from Iraq's current OPEC+ production ceiling, which stands at 4.431 million bpd for September and October. Securing a higher baseline quota is crucial for member countries, as it determines their share of the group's collective output and, consequently, their oil revenue.
The request has been submitted during a formal assessment by the OPEC+ group. The alliance has hired an external consultant to evaluate the maximum sustainable production capacity of each member nation. According to the report, this review is scheduled for completion by the end of September and is expected to be ratified by oil ministers in November.
AdPotential Hurdles and Market Context
Iraq's ambitious target may face challenges during the review process. The International Energy Agency (IEA), a key industry watchdog, estimates Iraq’s current sustainable production capacity at approximately 4.9 million bpd, well below the requested 6 million bpd figure. This discrepancy could become a point of contention within the group.
The negotiations are critical for cohesion within the OPEC+ alliance. The source material notes that Iraq has previously indicated it might reconsider its membership in OPEC if its quota is not raised sufficiently. A Bloomberg survey showed Iraq's actual production averaged 2.98 million bpd in August, with flows reportedly disrupted by regional conflict.
Read next
More on Commodities
US-China Summit to Tackle Key Commodity Disputes in Agriculture, Energy
The upcoming meeting between President Trump and President Xi is expected to focus on resolving trade frictions involving U.S. agricultural exports, Chinese energy tariffs, and the supply of critical rare earth materials.
Citi Warns Hawkish Fed Policy Threatens Non-AI Economic Growth
A recent report from Citi Research warns that the Federal Reserve's hawkish monetary policy could suppress the U.S. housing market and make the broader economy dangerously dependent on AI investment.
Petrobras Board Approves Participation in New Government Diesel Subsidy Program
Brazil's state-run oil company, Petrobras, will join a new government program providing a 1.00 real per liter subsidy on diesel, a move aimed at stabilizing fuel prices ahead of the upcoming presidential election.
Oil Prices Retreat as China Urges Iran to Curb Houthi Attacks on Saudi Facilities
Crude oil futures fell on Friday after reports that China, at Saudi Arabia's request, pressured Iran to rein in Houthi attacks, easing some geopolitical supply fears. However, ongoing pipeline disruptions and refining constraints continue to support the market.