An Iraqi Oil Ministry official told Reuters that Baghdad would be forced to consider all options if its OPEC production quota is not substantially raised, adding weight to earlier reports that Iraq is weighing withdrawal from the oil cartel. Other sources said the option of leaving the organization has been discussed but a decision to remain and seek a higher quota was made for now.
A senior Iraqi Oil Ministry official told Reuters on Thursday that Iraq would be forced to reconsider its OPEC membership if the cartel does not grant Baghdad a substantially larger production quota. The threat follows an earlier report by Shafaq News, which The Zioneer reported at 12:38, indicating that Iraqi authorities were weighing an exit from OPEC. In Thursday's remarks, the official said Iraq "will be forced to consider all options available to it if its oil production quota within OPEC is not increased extensively." Other sources told Reuters that the possibility of withdrawal was previously discussed but that a decision was made, for now, to remain within the organization and push for a higher quota.
Iraq is the second-largest producer in OPEC after Saudi Arabia, and any move to leave the cartel would reshape global oil markets. The development follows the recent departure of the United Arab Emirates from OPEC, as Reuters noted on June 20. Iraq's frustrations with the quota system have been longstanding, and renewed tensions with OPEC come against the backdrop of uncertainty in the Strait of Hormuz and the broader post-war energy landscape. The option of withdrawal remains on the table if negotiations within OPEC fail to deliver a meaningful increase in Iraq's output ceiling.
3 developments
- DevelopingIran oil production down 19% in past month, OPEC data shows
- StrongIraq says oil fields ready to resume full exports, pending Hormuz passage
- StrongAmerica warns citizens to leave Iraq immediately as analysts predict multi-day campaign
- DevelopingIraq reopens airspace after Iran announces ceasefire
Source and signal
- Internal intake