In Iraq, rising oil demand drives the economy forward. The Organization of the Petroleum Exporting Countries, known as OPEC, predicts stronger economic growth for the second half of the year. This optimism persists even though global trade conflicts remain tense. The group expects refineries to keep processing more crude oil to satisfy the surge in summer travel.
Iraq benefits greatly from this rising oil activity. OPEC left its forecasts for global oil demand growth steady for 2025 and 2026. This shows confidence in a robust economic outlook. India, China, and Brazil all exceed expectations. Meanwhile, the United States and the Eurozone continue to recover from last year’s downturn. Therefore, Iraq stands poised to profit from the improving global economy.
Moreover, Iraq’s oil sector may expand as OPEC+ plans to boost production. OPEC+ groups OPEC, Russia, and other allies. They want to reclaim market share after years of output cuts. On July 5, OPEC+ agreed to raise production by 548,000 barrels per day in August. This move follows the price swings caused by recent tensions involving Israel, the U.S., and Iran.
Interestingly, oil prices have not dropped sharply despite the planned output hikes. Rising seasonal demand supports prices. Refineries worldwide increased their crude intake by 2.1 million barrels per day in June compared to May. Iraq benefits as refiners finish maintenance and ramp up processing. Higher refinery activity points to a stronger oil market.
Iraq’s prospects look brighter as refinery intakes remain high. OPEC believes global refineries, especially in the U.S., will keep processing large volumes. This ensures enough fuel for growing travel demands, including gasoline, jet fuel, and other transport fuels. Iraq, as a significant oil producer, gains from this steady demand.
Notably, OPEC holds a more optimistic demand outlook than some other agencies. The International Energy Agency, for instance, recently cut its forecasts. Yet, even the IEA admits the oil market might be tighter than it seems because refineries work hard to meet travel needs.
OPEC’s report shows OPEC+ pumped 41.56 million barrels per day in June. This marks an increase of 349,000 barrels per day from May. The rise fell slightly short of the group’s planned hike. Some countries, including Iraq, reduced output to balance earlier overproduction. However, Kazakhstan’s production rose in June after dropping in May. It climbed by 64,000 barrels per day to reach 1.847 million barrels daily.
Iraq’s role in global oil remains significant. The country carefully manages production to align with OPEC+ goals. As demand grows, Iraq stands ready to supply the world’s energy needs. Therefore, Iraq remains a vital player in the global oil market.