Iraq has warned that it could leave OPEC after its proposal to increase oil production was rejected. The Iraq threatens to leave OPEC development has raised concerns in global energy markets, as Iraq is one of the world’s largest oil-producing countries and plays a key role in the organization.
Baghdad had proposed increasing its oil production and exports to help recover from the economic losses caused by the war. However, after OPEC reportedly rejected the proposal, Iraqi officials signaled that they may reconsider the country’s membership in the oil-producing alliance.
According to the Iraqi News Agency, citing sources, no final decision has been made yet. The report said that any move to increase oil production or withdraw from OPEC will likely be considered after the Iraqi prime minister’s planned visit to Washington next month.
Energy experts believe that Iraq’s exit from OPEC would have a major impact on global oil markets. As the world’s second-largest oil producer within the group, Iraq’s departure could create greater uncertainty and affect oil prices worldwide.
Analysts say the Iraq threatens to leave OPEC situation will be closely watched by global markets in the coming weeks. It is worth noting that the United Arab Emirates announced its withdrawal from OPEC and OPEC+ in April, and Iraq’s possible exit could mark another significant shift in the global energy landscape.