Adjusting quotas is better than withdrawing: Economist warns against Iraq leaving OPEC
Economic expert Abdul Rahman Al-Mashhadani warned of the dangers of any move by Iraq to leave OPEC, explaining that Iraq lacks many of the necessary elements to enable it to withdraw from the organization.
Al-Mashhadani told Al-Maalouma, “Discussing Iraq’s exit from OPEC is not a simple matter at all. Iraq cannot leave the organization because it would be unable to withstand any price war.”
He added, “Iraq has already suffered greatly from the price war between Russia and Saudi Arabia, which led Riyadh to offer a barrel of oil at less than $7 below its usual price while increasing production by 500,000 barrels, causing the price per barrel to reach $18.”
He explained that “Iraq lacks the resources to withstand any price war, in addition to lacking a sovereign wealth fund and diversification in exports and production. Therefore, any change in the price per barrel will cause Iraq significant hardship.”
He emphasized the importance of Iraq remaining within OPEC while exerting pressure to adjust its export quota, citing its high production capacity and its position as the fifth-largest holder of global reserves.
Almaalomah.me