Iraq dismisses OPEC+ exit reports

Iraq’s Ministry of Oil has officially dismissed reports that Baghdad is considering an exit from the OPEC+ alliance – a step recently adopted by the UAE.

IMAGE: Oil barrels with Iraqi flag. Getty Images

The oil ministry clarified that neither Prime Minister Ali al-Zaidi, nor the Iraqi government, has proposed any plans to withdraw from the Saudi Arabia-led group of oil producers.

“The reports suggesting that Iraq is considering ending its membership in OPEC do not reflect the official position of the Iraqi Government,” Iraq’s oil ministry said in a statement.

The statement comes in response to recent speculation that Baghdad might exit the OPEC+ coalition, if its crude production quota is not increased.

Despite a designated target of 4.3 million b/d, Iraq’s oil sector has consistently underperformed in recent months, with production in May reaching only about 1.5 million b/d, according to OPEC’s latest monthly oil market report.

The decline in production can be largely attributed to the ongoing Middle East conflict that has disrupted regional production and choked oil flows through the Strait of Hormuz.

The oil ministry stated OPEC+ expects all voluntary production cuts to be fully phased out over the coming months. “This will contribute to increasing Iraq's production baseline,” it said.

Earlier in June, seven member countries collectively agreed to adjust their output by 188,000 b/d starting next month, building on the 1.65 million b/d in voluntary cuts announced in April 2023.

As part of this implementation, Iraq is set to increase its production by 26,000 b/d, bringing its July output to approximately 4.38 million b/d.

Notably, Iraq’s potential departure would deal a severe blow to the Organization of the Petroleum Exporting Countries (OPEC), following the UAE’s exit less than two months ago.

By Aparupa Mazumder

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