Iraq Approves Plan To Increase Oil-Output Capacity

The Iraqi cabinet on April 1 approved a plan to raise the nation's crude-oil production capacity to 6.5 million barrels per day (bpd) by 2022 - currently it's around 5million bpd. 

Remember, Iraq is OPEC's second-largest producer after Saudi Arabia and depends on the industry to provide more than 90 percent of its income.

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Rogue Iraq yet again flexing its oil production muscles. OPEC will not let allow Iraq to derail the production cut agreement, no will it allow itself as a collective to flood the market with oil after the exit at the hands of one obstinate player. Demand will eat up some of this excess capacity, and what is not offset by additional demand will likely be offset by powerhouse Saudi Arabia. 

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They are saying that they need money to diversifying their economy and for that it is necessary to increase oil production. Well!! i am not sure...but yes it will definitely affect the oil cut deal. And this showing that OPEC don't have any Exit plan from Oil cut deal or strategy in their hands. and it is really a matter of concern for OPEC.  

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