Iraq Threatens to Leave OPEC Over Production Quota Dispute

Iraq is considering withdrawing from OPEC, the Organisation of Oil-Exporting Nations, if the cartel refuses to meet Baghdad's demand to increase the country's crude oil production quota. The potential move would deal another significant blow to OPEC, which has already lost a major member in 2026.

Iraq has indicated that it may withdraw from OPEC, the Organisation of Oil-Exporting Nations, if the cartel fails to meet Baghdad's demand to increase Iraq's crude oil production quota. This statement puts the organisation under further strain at a time when its membership has already diminished.

A New Blow for OPEC

OPEC has already had to contend with the departure of a major member in 2026, making Iraq's potential exit particularly damaging to the organisation. Iraq is one of the largest crude oil producers among OPEC member states, and its withdrawal would weaken the cartel's ability to control global crude production volumes and prices.

Baghdad has made clear its desire to secure a larger production quota, which would allow the country to sell more oil to international markets. The production restrictions imposed by OPEC have proven economically burdensome for Iraq, particularly given the country's substantial investments in developing its oil reserves.

The Organisation's Future in Question

Should OPEC fail to reach a compromise with Iraq, the cartel would face a significant reduction in membership numbers, putting into question the organisation's long-term influence over global oil markets. The world crude market is watching Baghdad's negotiations with the cartel closely, as their outcome will directly affect the global price of the commodity.