It is an organization that aims to coordinate and unify oil trade policies among member states to ensure fair and stable prices for oil producers and continued effective and regular supplies of oil to consuming countries. The member states of this organization decide collectively to raise or reduce oil production in order to maintain prices …
It is an organization that aims to coordinate and unify oil trade policies among member states to ensure fair and stable prices for oil producers and continued effective and regular supplies of oil to consuming countries.
The member states of this organization decide collectively to raise or reduce oil production in order to maintain prices and create a balance between supply and demand.
The relationship between oil production and oil inventories with oil prices
Of course, the relationship is inverse between them, as increasing production means supply is outweighed by demand, thus lowering prices, while reducing production means demand is outweighed by supply, thus increasing prices. The same applies to oil stocks.
The difference between oil stocks and oil reserves
Reserves are the oil present in the ground that has not yet been extracted. They are divided into proven reserves, which are the amount of oil whose existence has been scientifically confirmed and can be extracted during the coming years, and potential reserves.
As for stocks, they are oil extracted and represent the quantities of crude oil and oil derivatives that companies and governments store for commercial or strategic purposes.
It is common for inventory changes to affect oil prices, while there is no direct correlation between reserves and crude prices
OPEC members
Of course, OPEC members are not a fixed number, but rather change with the entry or withdrawal of new countries. The OPEC countries are:
•Kingdom of Saudi Arabia
•Algeria
•Angola
•Equatorial Guinea
•Gabon
•Iran
•Venezuela
•Iraq
•Kuwait
•Libya
•Nigeria
•Republic of the Congo
•The United Arab Emirates
What is OPEC+?
OPEC Plus is an agreement that includes 13 member countries of OPEC in addition to 10 countries outside that organization. Therefore, the number of OPEC Plus countries is 23 countries, and the members of OPEC Plus are:
•Russia
•South Sudan
•Sudan
•Mexico
•Sultanate of Oman
•Azerbaijan
•Albahren
•Brunei
•Kazakhstan
•Malaysia
The importance of OPEC
The organization’s news, reports, and decisions are of great importance and influence on oil prices, as the OPEC group produces about 30 percent of the total global crude oil, and with Russia’s accession through OPEC Plus, the total production reached more than 40 percent of the total global production.
How do we know the dates of OPEC meetings and when the organization’s reports are issued?
This can be known through the economic calendar
