Iraq Weighs OPEC Exit Amid Production Quota Dispute

Prime Minister Ali al Zaidi’s administration has set an ambitious target to reach a production capacity of 7 million barrels per day. Officials argue that existing constraints stifle the economic recovery necessary to support a growing population, putting Baghdad at odds with the group’s overarching strategy. While a senior oil ministry official indicated that remaining within the alliance remains the preferred path, the government is actively evaluating all alternatives to secure the revenue required for its domestic agenda.

The prospect of an Iraqi departure follows the recent exit of the United Arab Emirates, further straining the cohesion of the OPEC+ alliance. Unlike smaller departures, losing a founding member with such significant output capacity would create profound instability in global energy markets. Analysts suggest that Baghdad is primarily leveraging this threat to gain bargaining power in upcoming negotiations with Saudi Arabia and other key members. Ultimately, the standoff forces a critical test of OPEC’s ability to balance production restraint with the urgent economic needs of its member states.