Iraq is prepared to leave OPEC if the cartel refuses to significantly raise its oil production quota, according to government sources cited by media reports.
The threat marks a sharp escalation in Baghdad’s frustration with the group’s output discipline, signaling that the founding member may prioritize national revenue over collective stability.
The prospect of an Iraqi exit introduces fresh supply-side uncertainty into an energy market already navigating geopolitical headwinds.
While no immediate price spike has materialized, the rhetoric adds to the risk premium embedded in crude valuations.
Traders are weighing the likelihood of a coordinated response from Riyadh and Abu Dhabi against the potential for a fragmented supply landscape.
This development follows earlier reports that Iraq had signaled its willingness to withdraw from the organization if quota demands were not met.