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Iraq seeks higher OPEC oil quota baseline of 6 million bpd

Baghdad is asking OPEC to set future quotas using a 6 million barrels per day baseline, above its August output of 3.37 million bpd.

Reported · Written up by our desk · Energy

Iraq has asked OPEC leadership for a substantially higher crude production baseline to be used in setting the country’s future quotas, Bloomberg reported, citing unnamed sources with knowledge of the matter. The proposal would set a daily baseline of 6 million barrels for quota purposes.

According to the report, the 6 million bpd baseline would be well above Iraq’s current production rate, which stood at about 3.37 million barrels per day in August, compared with 2.77 million barrels per day in July.

Iraq’s Prime Minister has also said the country will seek to raise oil production to between 8 million and 10 million barrels per day over the next six years, despite war related disruptions. Before the war began, Iraq produced around 4 million barrels per day.

The request comes as Iraq tries to navigate export constraints, including Iran’s effective closure of the Strait of Hormuz, historically Iraq’s primary crude export route. While exports through Hormuz have been pushed back to around 2 million bpd last month, traffic has remained below pre war levels, especially after the United States and Iran began fighting again.

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