Iraq Renews OPEC Exit Threat Unless Production Quota Raised - Reuters

Key Facts

In a development contradicting earlier statements, Reuters reported citing sources that Iraq warned it might leave OPEC if its production quota is not raised. The threat comes days after a formal denial from Iraq's Oil Ministry of any immediate exit intention, signaling potential division in the official stance.

The threat emerges amid structural challenges for OPEC, with reports that the UAE left the group two months earlier, targeting a production capacity of 5 million barrels per day by 2027. Pressure mounts on Saudi Arabia, the alliance's top producer, to accommodate quota adjustment demands.

Traders are watching the upcoming OPEC+ ministerial meeting in June for signals of flexibility. Oil prices are currently driven by uncertainty, with the market awaiting statements or developments that could shape production policy.