Iraq preparing to exit OPEC (Photo- Getty)
There could be another major breakdown in OPEC, the largest oil selling organization. After UAE, Iraq is considering exiting it. Iraq says that if its conditions are not accepted in OPEC, then Baghdad can walk out of this organization. After the end of the Iran War, the United Arab Emirates separated itself from OPEC and OPEC Plus.
News agency Reuters has made a report quoting Iraqi sources. According to this, Iraq Oil OPEC wants to increase the quota to sell. If this increase does not happen then Iraq can pull itself out of this organization.
Question- What does Iraq want from OPEC?
Iraqi government spokesman Haider Al Abudi said- We have set a target of producing 7 million barrels of oil. That means Iraq wants to sell 7 million barrels of oil per day in the coming time. Iraq is working to restore its full oil export capacity. Our aim is to sell as much oil as possible, so that the economy grows.
Iraq is currently allowed to sell 4 million barrels of oil per day through OPEC quota. This figure is before the Iran war. During the Iran War, Iraq was able to sell only 1 million barrels of oil per day. Iraq now wants to increase the quota to compensate for this.
Iraq’s economy is under pressure due to the Iran war. Iraq’s main source of revenue is oil, which has not been sold due to the closure of the Strait of Hormuz. However, Iraq is now trying to improve it.
Recently the Prime Minister of Iraq had given instructions to increase investment and oil production capacity in Baghdad.
What will be the impact of Iraq’s exit?
Iraq is a founding member of OPEC. The first meeting of OPEC was held in Baghdad, the capital of Iraq. Iraq is considered a strong member of OPEC. If Iraq leaves this organization, its unity may suffer a blow. Because, UAE has already gone out of it on the issue of oil production.
Not only this, Iraq’s exit may bring down oil prices. Because, as oil production increases, there will be pressure in the market. This could prove harmful for Saudi and other OPEC members.
Apart from this, some more countries may exit from OPEC. Because, selling oil independently can prove beneficial for them in the national interest.
