Iraq rejects stories that they are seeking an exemption from OPEC+ cuts, with Oil Minister Ihsan Abdul Jabbar maintaining that an increase in production would cause crude prices to fall, according to Bloomberg.

In the interview with Al-Sabbah, Jabbar praises the cuts and pointed out their positive and stabilizing impact on the oil market. What’s more, Jabbar believes with the current cuts in place oil will reach $50 per barrel in early 2021 amid a mild recovery in global demand. 

With this said, Jabbar didn’t address whether Iraq, OPEC’s second biggest-producer, would seek a quota exemption in the future.

Despite Jabbar’s protestations, the rumors circulating citing uncertainty as to the extension of cuts has caused oil to drop by 46 cents.

Iraq is seeking an upfront payment of about $2 billion in exchange for a long-term supply contract for 48 million barrels of crude. This will help offset the economic downturn caused by the drop in oil prices.

Iraq is almost entirely reliant on oil exports for its state budget.