Iraq's oil ministry has expressed the need for a review of its oil production quotas, following reports that the country might consider leaving OPEC due to dissatisfaction with its current quota. As the second-largest oil exporter in OPEC, Iraq's influence is notable, especially after the UAE's departure from the group.
The Iraqi government has clarified that it has not officially decided to withdraw from OPEC, but the ongoing discussions about quotas are critical given Iraq's heavy reliance on oil exports, which account for a substantial portion of its GDP.
The geopolitical situation has further complicated Iraq's oil export capabilities, particularly since the onset of conflict involving the U.S. and Israel against Iran. In response, Iraq has approved plans to enhance crude exports through the Kurdistan-Turkey pipeline, aiming to significantly increase its shipments.
This new route could alleviate some of the economic pressures stemming from its reliance on exports through the Strait of Hormuz, which have been severely impacted by the ongoing conflict. Data from QuantCube Technology indicates that Iraq's overall exports have sharply declined since the conflict began, underscoring the urgency of the situation for the Iraqi economy and its oil sector