Iraq threatens to leave Opec if quota demands not met

Tehran (TIP): Iraq does not intend to leave Opec, but it will consider doing so if demands for a higher production quota are not met, the country’s Oil Ministry has said.
“There is currently no intention for the ministry to withdraw from Opec, and we remain committed to working within the organisation’s mechanisms,” the ministry’s spokesman Salim Al Rikabi said on Thursday, June 25.
Mr Al Rikabi added that Iraq is moving ahead with plans to raise its oil production to match its capacity and national needs. He said the ministry expects Opec to increase Iraq’s production quota accordingly.
“If that does not happen, there will be a decision regarding staying in or exiting the organisation,” he said.
Iraq is Opec’s second-largest producer and has repeatedly pushed for a higher quota, arguing that its output potential and postwar reconstruction needs justify an increase above current limits.
The country depends on oil for at least 90 per cent of its income, which has been slashed since the Iran ?war effectively blocked exports via the Strait of Hormuz. That has put the government in a tight financial spot.
No timeline was given for a potential decision on membership.
Later on Thursday, the Iraqi Oil Ministry issued a clarification, stating that reports suggesting Baghdad was planning to leave Opec “do not reflect the government’s official position”.
“Iraq has consistently emphasised the need to reassess production ceilings to align with the sustainable production capacities of member states, in line with agreement endorsed by all parties and understandings of Iraq’s security and economic circumstances,” it said.
The ministry noted that Opec and its allies had already responded by launching a process to reassess the maximum sustainable production capacity of member countries.