Iraq Plans to Increase Oil Production to 8-10 Million Barrels per Day

Iraq has sent a delegation to Saudi Arabia requesting an increase in its oil production quota within OPEC. The country aims to boost its output to 8-10 million barrels per day over the next six years, while prior to the war with Iran, it was producing 4 million barrels. Results from the independent auditing firm DeGolyer and MacNaughton are expected, which will assess the maximum capacities of OPEC+ members. The review will be completed by the end of September, after which discussions on new baseline production levels starting in 2027 will commence. A higher baseline level would allow Iraq to expect a larger quota, making competition for these figures intense. Due to the regional conflict, Iraq is seeking new export routes, including expansion through the Turkish port of Ceyhan and launching routes to Syria and Jordan. The construction of a pipeline to Syria may take about four years and cost $15 billion. Currently, the only operational pipeline remains the Turkish route, with a transportation capacity of around 170,000 barrels per day. Iraq's increase in production could undermine OPEC+ unity and threaten long-term oil price declines, although an immediate surplus of crude on the market is not anticipated.

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