Overview
- Reports on Thursday said a senior Iraqi oil ministry official told Reuters that Iraq would consider all options, including leaving OPEC, if its production quota is not significantly increased.
- Iraq’s Oil Ministry publicly denied any current intention to withdraw and said it remains committed to OPEC while it presses for a quota revision.
- OPEC+ approved a modest 26,000 barrels per day increase for Iraq starting in July, a move Baghdad says is far too small to address its fiscal crisis.
- Iraq’s push comes as exports and government oil revenue have sharply fallen because wartime damage and restricted shipping through the Strait of Hormuz have cut shipments from Basra.
- OPEC has launched an independent review of members’ sustainable production capacity and the UAE’s recent exit sets a precedent that raises questions about the cartel’s unity and future quota rules.