Increasing oil exports from Iraq has forced Baghdad to start selling come grades of crude oil for as little as $30 per barrel.
Iraq has increased exports this year by over 13% which equates to an additional 500,000 barrels of oil per day.
The increase is coming from the South of Iraq, which is located far from the fighting with the ISIS, with record exports of over 3 million BPD being sold abroad.
A big increase in exports happened in June, when Iraq split the stream into two grades, Basra Heavy and Basra Light. This meant they were able to deal with the problem associated with the quality issues of Iraqi Oil. This allowed LukOil in particular to ramp up production.
Even though the 2016 outlook for production increases in Iraq looks to slow down from its current rate, this isn't going to help the world oil price with sanctions shortly being lifted from Iran, and more stability happening in Libya.
However, you are unlikely to see any cut backs from Saudi Arabia or other OPEC Members.