Iraq's OPEC Dilemma: Will It Stay or Go?

Iraq is considering leaving OPEC if its oil production quota is not increased, following the recent exit of the UAE. The move could significantly impact the organization, as Iraq is a founding member. Financial strains from the Iran war have intensified Iraq's push for a quota increase.

Iraq is reportedly contemplating an exit from the Organization of the Petroleum Exporting Countries (OPEC) if it does not receive an increased oil production quota. The discussions come in the wake of the United Arab Emirates' departure from the group, dealing a substantial blow to the oil cartel.

OPEC, formed during the Baghdad Conference in 1960, has been pivotal in regulating global oil markets alongside Russia and other non-member countries under the OPEC+ banner. However, current production cuts, primarily due to the closure of the Strait of Hormuz amid conflict, have strained member relations.

As a founding member and a major oil producer, Iraq's potential withdrawal would mark a significant shift in OPEC's dynamics. Despite Baghdad's claims denying the official consideration of leaving, the financial pressures of disrupted exports due to the Iran war could drive the decision.