Iran Hits Iraq Demand for Bigger OPEC Quota

Iran and Iraq, enemies on the battlefield but partners in the Organization of Petroleum Exporting Countries, clashed at the conference table Wednesday over an Iraqi demand for a bigger share of OPEC oil production.

The conflict was expected to reduce the chances for a successful meeting of all 13 members of OPEC today.

Starting with two preparatory meetings of key oil ministers Wednesday, OPEC was trying to settle demands by Iraq, Ecuador, Gabon and Qatar for larger proportions of OPEC’s shrinking share of the world oil market.

Kassim Ahmed Taki, the oil minister of Iraq, said his country wants a production quota of 2 million barrels a day, compared to its current OPEC-decreed limit of 1.2 million barrels. Taki said Iraq has begun shipping oil through a new pipeline across Saudi Arabia, boosting its sales to almost 2 million barrels a day.

As Taki spoke to reporters, Iranian Oil Minister Mohammed Gharazi was sitting across the conference table, telling other reporters that his government would never agree to an increase in Iraqi oil production.

‘Not for Iraq’

The two ministers, whose countries have been at war since September, 1980, were speaking before the start of a committee meeting to review recent developments in the oil market.

When asked whether his delegation would agree to Iraq’s demand, Gharazi said through an interpreter, “not for OPEC, not for Iraq.” He also accused Iraq of disregarding other OPEC leaders’ calls for greater unity and discipline.

“They (Iraqis) do not take into consideration the OPEC unity,” he said. “In most of the cases they do not abide by OPEC decisions.”

The conflict comes as Iraq has sharply reduced Iranian oil output by repeatedly bombing the key Iranian oil shipment terminal at Kharg Island.

It is believed that Iranian production has dropped by at least 1 million barrels a day in recent weeks from the former level of 1.5 million barrels daily.