(Bloomberg) -- Talks to extend OPEC+ production cuts hit an impasse on Thursday after Iraq said it will only be able to reach its output target at the end of July, defying an ultimatum from Saudi Arabia and Russia to stop cheating on the deal.

While Moscow and Riyadh have already agreed they should continue record supply cuts for an extra month -- instead of easing them in July as previously planned -- they will only do so if all other countries implement their pledged cuts in full.

Nigeria, Angola and Kazakhstan have given sufficient assurances that their compliance will improve, but Iraq has not, said people familiar with the matter. In a letter to fellow members, the Oil Ministry in Baghdad asked for more time and consideration of issues, such as Kurdish autonomy, that make it difficult to cut, the people said.

Several days of fruitless talks this week, in which old OPEC+ tensions have resurfaced, carry considerable risk for oil prices. If the cartel can’t agree to modify its current deal, millions of barrels a day of fresh supply could return next month to a market that is only tentatively recovering from the coronavirus lockdown.

The 23-nation partnership between the Organization of Petroleum Exporting Countries and other major producers has helped engineer a doubling in international oil prices since April. But if the Iraqis don’t shape up then Riyadh and Moscow are warning they will start to phase out the supply curbs that are putting a floor under the market.

The kingdom and the Kremlin are pushing the stragglers hard -- not just demanding they implement the cuts already promised, but asking for deeper curbs in the coming months to compensate for their earlier failings. That’s a painful prospect for Baghdad, already struggling with the budgetary impact of low oil prices. The Iraqi letter didn’t address the issue of compensation, the people said.

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