OPEC - It's the Oil, Dummy! MBrew

ENERGY OPEC Pumps Its Own Gas

OPEC

Day 4 already? Time flies when you’re spending a week dissecting the most important events on the economic calendar. Today, we’re tackling the biannual economic fête to end all economic fêtes—the OPEC meeting, where members of the Organization of the Petroleum Exporting Countries determine the direction of global oil markets and debate unleaded vs. 89 octane. What is OPEC? A cartel of 14 major oil exporting countries formed in 1960. Their goal? World domination...of global petroleum prices. It’s all about supply and demand—members influence pricing by voting to raise or lower oil production. OPEC members supply roughly 43.5% of the world’s crude production and hold 81.9% of its crude reserves, so those changes in supply matter. OPEC begins its meeting today in Vienna, and members are considering a substantial production cut aimed at lifting prices battered by coronavirus concerns. China, where the epidemic began, is the world’s biggest oil importer. On the table: extending existing cuts by 1.7 million barrels per day. OPEC ally Russia reportedly isn't sold, but OPEC member Saudi Arabia craves higher prices to sustain its oil-dependent economy.