Iraq Denies Plans to Leave OPEC amid Dispute Over Oil Production Quotas

Iraq denied reports suggesting that Baghdad is considering ending its membership in OPEC, while reaffirming its push for a significant increase in its oil production quota within the organization.

The Iraqi government said on Thursday that it continues to emphasize the importance of reviewing oil output allocations, following reports that the country was weighing withdrawal from OPEC due to disagreements over production limits.

Iraq’s Ministry of Oil later stated that reports about a possible exit from OPEC “do not reflect the official position of the Iraqi government,” but confirmed that Baghdad remains committed to seeking changes to its production quota.

As the organization’s second-largest oil exporter, Iraq holds significant influence within OPEC, particularly after United Arab Emirates, one of the group’s largest producers, withdrew in April.

The comments came after reports from Reuters that Iraq was studying the possibility of leaving OPEC. Bloomberg News also cited a former Iraqi oil ministry spokesperson as warning that Baghdad would eventually need to decide whether to remain in the group if production quotas were not increased.

Iraq’s economy remains heavily dependent on crude oil exports, with its reliance on Gulf shipping routes becoming more significant following the outbreak of the US-Israel conflict with Iran on February 28.

In June, the Iraqi cabinet approved plans to accelerate crude oil exports through the Kurdistan-Türkiye pipeline network, a move expected to increase shipments by more than three times, from approximately 220,000 barrels per day to 770,000 barrels per day.

The route provides an alternative export channel through the Kurdistan region to the Turkish Mediterranean port of Port of Ceyhan.

Once operating at full capacity, the pipeline is expected to ease pressure on Iraq’s oil-dependent economy, which accounted for around 53% of real GDP in 2025, according to the World Bank.

Exclusive data provided by economic intelligence firm QuantCube Technology showed that Iraq’s overall exports declined significantly after the start of the conflict, partly due to the country’s geographic dependence on the Strait of Hormuz.

The QuantCube index tracks the volume of deadweight tonnage departing from Iraqi and Emirati ports, providing an estimate of the cargo capacity carried by vessels.