Key facts
- Iraq will consider all options if its OPEC quota is not significantly increased.
- Iraq is facing a critical financial crisis.
- Iraqi officials have considered leaving OPEC.
- Seven OPEC+ members agreed to a 188,000 barrels per day increase in their collective oil production quota.
- The UAE withdrew from OPEC+ earlier in the week.
Iraq has indicated it will explore all available avenues, including potentially exiting the organization, if its oil production quota within OPEC is not substantially increased. A senior Iraqi oil ministry official stated that a significant quota hike is essential given the country's critical financial situation, exacerbated by the war in Iran.
Separately, sources revealed that Iraqi officials had contemplated leaving OPEC but currently intend to remain a member and pursue a higher quota.
In parallel, seven OPEC+ members, including Saudi Arabia, Russia, and Iraq, agreed to raise their collective oil production quota by 188,000 barrels per day. This decision, widely anticipated by markets, was made following the United Arab Emirates' withdrawal from the group. The official statement from OPEC+ did not reference the UAE's departure. Analysts suggest this move signals OPEC+'s continued control over global oil markets, rather than a significant supply increase, especially as actual production already falls short of existing limits due to constraints like the Strait of Hormuz blockade.