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Iraq asks for a review of quotas as OPEC restores production allocations

Iraq's Oil -Ministry announced on Friday that OPEC had 'begun slowly restoring Iraq’s prewar production allocations'. This'move', it claimed, would'strengthen Iraq's output 'capacity' and support the recovery of its oil industry.

Baghdad, according to a state-run news agency, supports a reevaluation of OPEC's production quotas in order to reflect the conditions of member?states, including Iraqi economic and security circumstances.

The statement said that Iraq's Prime minister Ali?Faleh Al-Zaidi has not spoken about the possibility of Iraq quitting OPEC.

Sources with knowledge said that Iraq, OPEC’s second largest producer - after Saudi Arabia - and one of the five founding'members', had considered 'leaving the group if it did not allow Baghdad a significant increase in oil production.

This would be a major blow to the Organization of the Petroleum Exporting Countries (OPEC), which was already hit by the departure of the United Arab Emirates less than two months earlier.

Oil is the main source of income for the country, but this has decreased since the Iran war effectively stopped exports through the Strait of Hormuz.

Iraq's Oil Ministry?said later on Thursday that reports suggesting Baghdad might consider?ending its membership to OPEC didn't reflect the official position of the Iraqi Government.

The quota set by Iraq for July is 4.38 million barrels per day, but the current production is well below that due to the disruption caused by Hormuz. Reporting by Muayad Haeed, Writing and Editing by Muhammad Al Gebaly

(source: Reuters)