Iraq considers leaving OPEC due to dissatisfaction with oil quotas
Iraq is considering a potential exit from the Organization of the Petroleum Exporting Countries (OPEC) if the cartel does not increase production quotas, which is particularly important for the country amid economic pressure from the oil shock in the Middle East.
Iraq, the second-largest oil producer in OPEC, has faced a sharp decline in production due to the war in the Middle East. Iraq’s oil quota was 4.378 million barrels per day, but in February, the country was producing only 4.2 million barrels, and by May this figure had dropped to 1.48 million. The government believes that increasing the quota in line with its production capacity and the needs of the population will be a decisive factor for economic stabilization.
The United Arab Emirates (UAE) announced its exit from OPEC amid similar quota issues, with ongoing disputes with Saudi Arabia leading to 30% idleness of their spare capacities. Iraq, with an economy heavily reliant on oil exports, faces similar risks.
The new Prime Minister of Iraq, Ali al-Zaidi, has already stated his intention to boost production to 7 million barrels per day in the coming years, which will require a review of the current terms of participation in OPEC. Concerns about this are growing, as new economic challenges may affect the sustainability of the Iraqi economy.
| Country | Quota (million barrels/day) | Production in February (million barrels/day) | Production in May (million barrels/day) |
|---|---|---|---|
| Iraq | 4.378 | 4.2 | 1.48 |
| UAE | 3.4 | 3.64 | – |
