Iraq PM rejects OPEC exit threat, easing supply shock fears

Baghdad's denial of a potential OPEC withdrawal removes a key tailwind for oil prices, though geopolitical risks in the region persist.

By Handelsavisen Newsroom · Automated 2026-07-12 10:35 UTC · 1 min read

Iraq's Prime Minister has publicly dismissed reports that the country is considering withdrawing from OPEC, a move that had sparked concerns about a potential supply-side shock in global oil markets.

The statement directly addresses speculation that Baghdad might leave the cartel if it does not secure permission to increase its production quotas.

Analysts had warned that an Iraqi exit from OPEC could have triggered a significant price correction, with some estimates suggesting Brent crude could fall toward $50 per barrel.

Analysts had warned that an Iraqi exit from OPEC could have triggered a significant price correction, with some estimates suggesting Brent crude could fall toward $50 per barrel.

The Prime Minister's rejection of the exit scenario helps stabilize market sentiment, reducing the immediate risk of a supply glut from one of the cartel's largest producers.

The development comes amid ongoing tensions within OPEC+ regarding production levels and market share.

Former Iraqi Prime Minister Adel Abdul Mahdi has also advised against withdrawal, arguing that Baghdad should instead pursue a larger production quota within the existing framework.