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In a surprising reversal of earlier threats, the Iraqi government affirmed its continued membership in OPEC, with Oil Ministry spokesman Salim Al-Rikabi denying any current intention to leave, while noting the ministry may reconsider if the production quota is not raised. The clarification follows previous reports of an Iraqi ultimatum, which the Oil Ministry officially walked back.
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Sign InThe reversal comes amid significant challenges for OPEC, as reports emerged that the United Arab Emirates left the organization two months prior to Iraq's threat, targeting a production capacity of 5 million barrels per day by 2027. The UAE's exit, one of the Gulf's largest producers, deals a blow to the cartel's cohesion and adds pressure for quota adjustments.
Traders are watching the upcoming OPEC+ ministerial meeting for how the group will address Iraqi and UAE demands. Markets also focus on U.S. inventory data and statements from Saudi Arabia, the alliance's top producer. Oil price volatility is expected to continue amid uncertainty about OPEC's future.