Iraq Threatens OPEC Exit Over Oil Production Quotas

The Organization of the Petroleum Exporting Countries (OPEC) faces a period of instability following the departure of the United Arab Emirates on May 1, 2026. The UAE's exit reduced OPEC's share of global crude oil production from 35% to 31%, according to the U.S. Energy Information Administration. This shift occurred as regional conflict in Iran and the closure of the Strait of Hormuz disrupted production for several member states.

Iraq has since threatened to withdraw from the cartel unless production quotas are increased to match its national needs and output capacity. Prime Minister Ali al-Zaidi aims to raise production to 7 million barrels per day, up from the current 4.378 million quota, to rebuild the economy and attract foreign investment. The Iraqi government notes that 90 percent of its economy depends on oil revenues, which were severely impacted by the blockade of the Strait of Hormuz.

While spokesman Salim Al Rikabi initially signaled a possible exit, the Iraqi Ministry of Oil later clarified that Iraq remains committed to the organization's mechanisms. The ministry is currently calling for a reassessment of quotas to reflect sustainable capacity and current security conditions. To support its energy goals, Iraq is hosting European officials in Baghdad and discussing a joint maritime fleet with the United States to secure crude exports. Simultaneously, Saudi Aramco has resumed crude loadings at the Ras Tanura terminal following an interim deal between the U.S. and Iran to reopen the Strait of Hormuz.