Following the UAE's Lead, Iraq Warns It Could Leave OPEC. Here's What That Would Mean for Oil Stocks

Oil-stock implications are at the center of the report as Iraq considers leaving OPEC after the UAE’s surprise exit. The UAE announced in April it would leave OPEC in May, despite being a member since 1967 and ranking as the third-largest producer in the group. The article says Iraq is warning the cartel it could also exit if it does not get permission to significantly raise output. Iraq is OPEC’s second-largest producer after Saudi Arabia and one of the five founding members created in Baghdad in 1960. Its current quota is 4.378 million barrels per day, but the article cites May production of only 1.48 million bpd, attributing the shortfall to disruptions in the Strait of Hormuz linked to Iran. Iraq’s Prime Minister Ali al-Zaidi wants to rebuild the economy and target 7 million bpd in coming years. If OPEC blocks the plan, the piece says Iraq could pursue an independent strategy, potentially increasing supply and pressuring oil prices. It points to Chevron as already in exclusive talks for West Qurna 2, plus a deal on Nassiriya, and notes ExxonMobil could benefit through work on Majnoon.