Iraq's rapidly expanding oil production is likely to complicate OPEC's efforts to influence world prices as the country re-emerges as a major player after 20 years on the sidelines due to sanctions and strife.

For now, Iraq is backing Iran's push for OPEC to set lower production limits and keep prices high, but Baghdad's own ambitious plans for expansion could cause an overall production growth that might drive down prices.

Analysts say Iraq's new clout is shifting the power balance in the 12-member Organization of the Petroleum Exporting Countries and could force it to overhaul its intricate production quota system to accommodate Baghdad's greater output.

Iraq recently reached production of 3 million barrels per day, a level not seen since the 2003 U.S.-led invasion that ousted dictator Saddam Hussein. It is on track to become OPEC's second-largest producer in the coming year, surpassing Iran and trailing only Saudi Arabia.