Iraq is seeking a significant increase in its oil production quota from OPEC and has warned that it may consider leaving the organization if its demands are not met.
As the second-largest oil exporter within OPEC, an Iraqi exit would deal a major blow to the cartel.
The Iraqi economy is heavily reliant on its oil sector, with the vast majority of its exports needing to transit the Persian Gulf.
Iraq has called on OPEC to substantially raise its oil supply quota, officials in Baghdad stated on Thursday, following reports that the country might withdraw from the oil cartel over the quota dispute.
As OPEC's second-largest oil exporter, Iraq holds significant influence within the group. This development comes after the United Arab Emirates, OPEC's third-largest producer, announced its departure from the organization earlier in April.
Previous reports indicated that Iraq was weighing an exit from OPEC. A spokesperson for the Iraqi oil ministry was quoted stating that if the production quota is not increased, Iraq "must decide whether to stay or leave."
The Iraqi oil ministry later clarified that reports of a potential withdrawal "do not represent the official stance of the Iraqi government," but reiterated that Iraq continues to insist on a review of national production quotas.
Neither the Iraqi oil ministry nor OPEC immediately responded to requests for comment.
The Iraqi economy is deeply dependent on oil exports. Since the outbreak of conflict involving the U.S., Israel, and Iran on February 28th, the country's vulnerability due to its reliance on exporting oil via the Persian Gulf has been starkly exposed.
In June, the Iraqi cabinet approved a plan to significantly boost crude exports via the Kurdistan Region-Turkey pipeline, aiming to increase daily exports from the current 220,000 barrels to 770,000 barrels—a more than two-fold increase.
This route, which runs through the Kurdistan region to the port of Ceyhan on Turkey's Mediterranean coast, provides an alternative export channel for Iraqi oil. World Bank data indicates that the oil sector contributed 53% of Iraq's real GDP in 2025. Full utilization of this pipeline is expected to alleviate export pressures on this oil-dependent economy.
Exclusive data from the economic intelligence firm Kuan Lifang Technology shows that, constrained by geopolitical tensions in the Strait of Hormuz, Iraq's overall export operations have nearly ground to a halt since the conflict began.
The firm estimates total port cargo shipments by calculating the deadweight tonnage of vessels departing from various Iraqi and Emirati ports.
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