Baghdad has urged OPEC to increase Iraq's oil production quota, taking into account the damage done to its industry by its history of conflicts and the recent regional war, its oil ministry said Thursday.
Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the Middle East war, as it is hugely dependent on oil exports, which make up about 90 percent of its budget revenues.
Iraq's oil ministry said that reassessing production baselines was important "to ensure they are aligned with the sustainable production capacities of member countries", and with respect to "Iraq's unique security and economic circumstances".
OPEC has "responded by launching a process to reassess" its member states' capacities, the ministry said.
Following reports of a possible Iraqi exit from OPEC, oil ministry spokesperson Salim al-Rikabi told AFP that Iraq "has no intention of withdrawing from the organization and remains committed to its mechanisms".
But he added that the cartel "has to raise Iraq's production quota. Otherwise, a decision will have to be made about whether to stay or leave the organization".
Iraq has started increasing its production "in line with its capacities and needs", he said.
The ministry said that "reports suggesting that Iraq is considering ending its membership in OPEC do not reflect" the government's position.
Iraq's ministry said that any change would be decided within OPEC's existing framework, but noted there was a "high level of understanding" among members regarding Iraq's situation after decades of wars, sanctions, and recent attacks on the sector during the Middle East War.
All of these challenges will be considered to "ensure that Iraqi oil production reaches a fair level".
The Middle East war and Iran's blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.
During the conflict, several Iraqi oil fields were struck by drones mostly launched by pro-Iran armed groups.
Before the war, Iraq produced around four million barrels per day (bpd), and exported an average of 3.5 million bpd, mostly via Hormuz.
After the recent deal between Washington and Tehran to end the fighting, Iraq now hopes to return within two months to its previous production levels.
A former oil ministry official, who requested anonymity, warned against Iraq's exit from OPEC.
A "withdrawal would not serve the interests of Iraq", which is exclusively dependent on the oil sector, he said.
"I don't think that Iraq has really the incentives to leave OPEC," said Jorge Leon, an analyst at Rystad Energy.
Instead, he added, Iraq might be trying to apply pressure to "the capacity review exercise that the group is currently doing", which will serve as the basis for the 2027 quota.
