BAGHDAD, June 25 - A senior Iraqi oil ministry official said on Thursday that Iraq will be forced to examine every available option if the country’s OPEC quota is not substantially increased. The official framed a larger allocation as essential, given what Baghdad describes as a critical financial crisis brought on by the Iran war.
Sources separate from the ministry confirmed that Iraqi officials have at times contemplated an exit from the Organization of the Petroleum Exporting Countries, but those sources said the immediate plan is to remain within OPEC while pursuing a higher quota.
Officials in Baghdad made clear that securing a significant boost to Iraq’s OPEC quota should be treated with the highest seriousness. In their view, failure to raise the quota by a meaningful margin would leave Iraq with little choice but to reassess its position and consider all policy levers available to protect national fiscal stability.
The possibility of Iraq weighing departure from OPEC arrives after the United Arab Emirates left the group this year. Iraq is one of five founding members of OPEC and the organization originated in the Iraqi capital, details noted by government sources. The prospect of another founding member moving toward an exit would, according to the Iraqi perspective, represent an additional setback for the grouping.
The grouping of producers known as OPEC+ includes the Organization of the Petroleum Exporting Countries together with allied producers, among them Russia. OPEC did not immediately respond to a request for comment on Baghdad’s statements.
For now, the official and other Iraqi sources say the position is to remain in the cartel and press for a higher quota, even as internal discussions have at times included more extreme options. Baghdad characterizes the need for a quota increase as tied directly to the country’s urgent fiscal challenges.
Summary
Iraq has told OPEC it will consider all options if it does not receive a substantial rise in its production quota. While officials have reviewed the idea of leaving the cartel, the current plan is to stay and push for a larger quota. Baghdad cites a severe financial crisis linked to the Iran war as the driver for its demands.