OPEC faces new turmoil as Iraq considers exit over oil quotas

Iraq has indicated that it is prepared to explore all available options including a potential exit from OPEC over oil quota concerns.

According to a senior Iraqi oil ministry official as reported by Reuters, the exploration of all options including a shocking exit stems from oil quota dispute as the oil producer is looking to seek a higher quota.

As per sources privy to the matter, the nation is facing a critical financial crisis worsened by the ongoing conflict involving Iran, making a substantial quota hike an urgent economic necessity.

While sources confirm that Iraqi authorities have internally discussed the possibility of withdrawing from OPEC, this is not the priority for the officials. The first priority is to remain a member and seek a higher quota.

If Iraq decides to exit from OPEC , it would be a heavy blow to the oil-producing group as earlier this year, the United Arab Emirates departed the group in a seismic shock.

The current official strategy remains to continue membership while aggressively lobbying for higher production allowances.

The key factors behind this move are Iraq’s worsening economic conditions driven by the conflict in Iran and restricted Iraq's ability to export due to closure of the Strait of Hormuz.

Reports indicate that crude oil production slumped to a decade-low of 1.5 million barrels per day in April 2026, and while it saw a modest recovery in May, it remains far below the levels required for national financial stability.

The prospects of Iraq’s exit from OPEC carry significant implications for the group as the country is one of the founding members of it.