Iraq warns it might leave OPEC if oil quota not raised
Iraq has warned it may consider leaving OPEC if its oil production quota is not raised, according to sources familiar with the matter. Baghdad is exploring all options, including a potential exit, as it seeks a higher output limit to boost revenues.
Background
- OPEC (Organization of the Petroleum Exporting Countries) is a cartel of major oil-producing nations that coordinates production levels to influence global oil prices. Each member state is assigned a production quota.
- Iraq is OPEC's second-largest producer after Saudi Arabia. It has long chafed against its quota, arguing it needs higher output to fund reconstruction and economic development after decades of war and sanctions.
- In 2023-2025, OPEC+ (which includes Russia and other allies) implemented deep production cuts to prop up oil prices. Iraq has repeatedly exceeded its quota, straining relations within the group.
- An Iraqi exit would be significant: it could trigger a price war or prompt other quota-dissatisfied members (like the UAE) to seek similar concessions or leave too. Iraq has threatened to leave OPEC before, notably in 2023, but never followed through.