Iraq is considering leaving OPEC if production quotas are not raised significantly, according to a new report. The country is the cartel's second largest producer.
Reuters detailed that Iraq is going through a financial crisis as a result of the Iran war. Considering practically all of its oil is exported through the Strait of Hormuz, the country's production plummeted to almost zero for months, impacting its economy.
A senior Iraqi oil ministry official told the outlet that the country considered leaving OPEC, but the current plan is to remain there seeking higher quotas.
"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," the official noted.
Government spokesperson Haider al Aboudi said the country is already working to restore its export capacity and "aims to raise oil production to 7 million barrels per day over the coming years."
The cartel suffered another blow in May after the United Arab Emirates left amid cool relations with other members.
The move had been rumored for a while as the UAE appeared to disagree with production restrictions decided by the group.
"This decision reflects the UAE's long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets," the UAE said through its state-run news agency WAM.
"Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions," the country added.
The country is also fast-tracking an ambitious oil pipeline expansion designed to bypass the strategically vulnerable Strait of Hormuz and secure direct exports through the Gulf of Oman.
Officials in Abu Dhabi confirmed that the UAE will accelerate construction of a new west-east pipeline linked to the emirate of Fujairah, dramatically increasing the country's ability to export crude oil without relying on the narrow maritime chokepoint.
The new project could double export capacity through Fujairah by next year. The current pipeline is capable of carrying approximately 1.8 million barrels per day, but the upgraded network is expected to significantly increase the UAE's flexibility during periods of geopolitical turmoil.
