Iraq is pressuring OPEC for a significantly higher production quota to address a severe national financial crisis. Officials warned the nation may consider all options, including a potential exit from the cartel. Iraq currently serves as the second-largest producer within the organization.
Iraq’s Prime Minister argues that production quotas should reflect a member's population size and total capacity. The government seeks to maximize revenue as export traffic through the Strait of Hormuz normalizes following recent conflict-related disruptions. This development follows the recent departure of the United Arab Emirates from the group.
WTI crude oil futures fell below $70 a barrel, marking the lowest price level since February. Markets are reacting to the prospect of Iraq adding supply outside of OPEC constraints. Easing supply fears regarding the Strait of Hormuz transit also contributed to the bearish sentiment.