Iraq has issued a warning that it may reevaluate its membership in OPEC if it does not receive a higher output quota
Iraq has indicated that it might reevaluate its membership in OPEC should the organization not agree to a substantial increase in its oil quota.
The discussions arise during a delicate period for the producer alliance, as worries about discontent among key members may challenge the unity of the group. Iraq, a founding member of OPEC and its second-largest oil producer, has reportedly considered the option of departing from the organization, though no conclusive decision has been reached.
A senior official at Iraq’s oil ministry stated that the country is experiencing increasing economic pressures due to the conflict involving Iran and believes that its request for a higher production allocation merits serious consideration from fellow members.
Baghdad continues to prioritize securing a larger quota within OPEC, yet the official indicated that alternative options may be considered if negotiations do not yield satisfactory outcomes.
He emphasized that major producers, such as Saudi Arabia and its allies, ought to regard Iraq’s requests as a critical matter, noting that the government would have to consider all possible options if its concerns are overlooked.
While it has been recognized that conversations regarding a potential exit from OPEC have occurred, the official stated that any action toward leaving is still considered too early at this point.
OPEC has yet to issue a public response to the reported comments.
Government spokesman Haider al Aboudi confirmed that Iraq is dedicated to restoring its complete oil-export capabilities and aims to enhance production capacity in the coming years. However, he chose not to comment on the speculation regarding the country’s quota demands or a potential exit from the producer group.
As stated by al Aboudi, Iraq intends to progressively raise its crude production to approximately seven million barrels per day as a component of its long-term energy strategy.
Oil prices saw a temporary decline after reports emerged regarding Iraq’s discontent with its current OPEC allocation, causing crude to drop below $73 per barrel.
Since assuming office in May, Prime Minister Ali al-Zaidi has focused on economic recovery, implementing anti-corruption reforms, and working to attract international investment.
Speaking earlier this week, he emphasized Iraq’s stance that production limits ought to more accurately represent a country’s output capacity and population size.
The debate arises as seven key members of the broader OPEC+ alliance have jointly raised their production quotas by almost 600,000 barrels per day from April to June. OPEC+ comprises OPEC member countries along with significant oil-producing allies like Russia.
