ALBAWABA - In a Reuters exclusive report: Iraq, one of the founding members of OPEC, is now considering leaving the organization after Strait of Hormuz disruptions and limited oil production quotes hit the county hard.
“Saudi Arabia and other OPEC allies should treat this matter with the utmost seriousness. Failing that, Iraq will be compelled to consider all available options,” a senior Iraqi oil ministry official told Reuters.
Iraq’s economy has been stifled by the Strait of Hormuz blockages; and now as the strait timidly opens, oil production limits set by OPEC - in an effort not to plunge the price of oil - are cutting into Iraq’s income as it seeks to replenish its export economy.
Iraq leaving would deal a serious blow to the organization as it comes on the heels of the UAE’s exit just two months prior. Iraq is the second largest exporter of oil in the organization; second only to Saudi Arabia.
The Iran war has been detrimental to Iraq’s economy as the bulk of its income relies on oil exports, now it is threatening to “consider all available options” if OPEC’s oil production quota is not raised.
When asked if leaving is a serious consideration, the Iraqi oil ministry official said: “It's still premature for this step”.
On Wednesday, Iraqi PM, Ali al-Zaidi, wanted OPEC to raise Iraq's oil output quota in line with its production capacity and population; OPEC has declined to comment on the situation.
