Baghdad (IraqiNews.com) – Iraqi Prime Minister Ali al-Zaidi stated that his country will continue to ask OPEC for a fair production quota based on its capabilities and potential.
In an interview with Al Arabiya, al-Zaidi explained that the Iraqi government is not considering withdrawal from OPEC.
Last month, Reuters reported that Iraq, OPEC’s second-largest producer following Saudi Arabia and one of its founding members, was considering quitting if the organization did not enable Baghdad to dramatically expand oil output.
Local news outlets mentioned that Iraq is considering a proposal to boost its oil exports against OPEC’s restrictions to compensate for the wartime shortfall.
According to sources, Iraq is analyzing the implications of surpassing OPEC’s oil production ceiling because of the crude surplus and its impact on market prices.
This decision is motivated by a serious internal financial crisis caused by the regional war involving Iran, which has severely hampered the country’s oil exports and income.
Because of the prolonged war against Iran, Iraq has seen its exporting ability drastically cut back and hence requires a higher quota to keep its economy going.
Iraq has repeatedly stated that the constraints set by OPEC do not truly reflect its actual production capabilities and revenue requirements.