Iraq Could Quit OPEC in Bid to Pump More Oil
Iraq wants a higher ceiling to recover war losses, and officials say a refusal could force a decision on whether to stay in the cartel.
- On Thursday, Iraq's Oil Ministry warned the country might withdraw from OPEC if it fails to receive a higher oil production ceiling, though officials later clarified an exit is not currently official policy.
- Iraq is seeking to recoup revenues lost during the recent war, aiming to boost production to 5 million barrels per day as the nation struggles with heavy dependence on oil sales for 90% of its state budget.
- An official noted that "Saudi Arabia and other OPEC allies should treat this matter with the utmost seriousness," warning Iraq will be "compelled to consider all available options" if quota aspirations remain unaddressed.
- Any decision regarding output increases or withdrawal will likely follow Prime Minister Ali al-Zaidi's planned visit to Washington in the middle of next month, according to sources familiar with government strategy.
- Analysts suggest an Iraqi exit would be a larger blow to the cartel than the United Arab Emirates' departure on May 1, 2026, which followed persistent disagreements over OPEC production restrictions.
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Following the UAE’s Lead, Iraq Warns It Could Leave OPEC. Here’s What That Would Mean for Oil Stocks
Key PointsIraq has warned that it could leave OPEC if it doesn't increase its production quota.An Iraqi exit from OPEC would be a big blow to the cartel.Higher Iraqi production would likely push down oil prices, while boosting the growth prospects of U.S. oil giants Chevron and ExxonMobil. 10 stocks we like better than Chevron › The United Arab Emirates (UAE) shocked the global oil market in April when it announced it would leave OPEC in May. Th…
Iraq warns it might leave OPEC if oil quota not raised
Iraq has considered leaving OPEC if the oil producer group does not allow Baghdad to significantly increase oil production, sources with knowledge of the matter told Reuters. The prospect of Iraq leaving would be a serious blow to the Organisation of the Petroleum Exporting Countries, which saw the United Arab Emirates walk away less than two months ago. Iraq is the group's second-largest producer after Saudi Arabia and one of its five founding …
The cartel is crumbling.
After UAE, Iraq plans to quit Saudi-dictated OPEC. How big will be the jolt?
After the UAE's exit, Iraq has become the latest OPEC member to challenge the cartel's production quotas. As Baghdad hints at a possible withdrawal unless its output ceiling is raised, the dispute threatens to deepen cracks within the oil-producing alliance and further weaken its influence over global energy markets.
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