Key Information About the OPEC Meeting Schedule
When participating in trading on the financial markets, it is always important to keep an eye on the economic calendars so that you are aware of important upcoming news releases and key events occurring in the financial world. An awareness of the scheduling of high impact data releases means that a trader can plan their trades accordingly, to either avoid the risk of investing at such a volatile time or to benefit from the rapid movements in asset prices that occur around these events. One of the most important dates to be aware of in the economic calendar is the timing of the OPEC meeting, as the outcome of this meeting will have a significant impact upon market prices and especially that of global oil.
What is OPEC?
OPEC is short for the Organisation of Petroleum Exporting Countries and it is a permanent organisation, designed to be intergovernmental, which was formed at the 1960 Baghdad Conference by the nations of Venezuela, Saudi Arabia, Kuwait, Iraq and Iran. These 5 founding countries later were joined by another 9 member countries, namely Qatar in 1961, Indonesia in 1962, Libya in 1962, United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973, Angola in 2007 and Gabon in 1975. While some of these states have on occasion temporarily suspended their membership of the organisation, they are all currently participating members of OPEC. The headquarters of OPEC were originally located in Geneva in Switzerland, however after five years, it was relocated to Vienna, Austria. The purpose of OPEC is to unify and co-ordinate the policies surrounding petroleum amongst its member countries with the aim of securing stable and fair pricing on behalf of producers of petroleum as well as ensuring a regular, economic and efficient petroleum supply to consuming nations and guaranteeing fair returns on capital to anyone investing in the petroleum industry. The fourteen nations who are members of OPEC accounted in 2015 for 43% of the world’s oil production as well as holding 73% of global “proven” oil reserves. This means that OPEC have a significant impact on the prices of oil around the globe. Over the last decade, the world economy has represented a major risk to oil markets because of macroeconomic uncertainties and heightened risk about international financial systems. Increasing amounts of social unrest around the world has also had a major impact upon supply and demand, although overall, balance has been relatively maintained in the market until 2014 when oversupply combined with speculation to result in a fall in global oil prices. More recently, there have been further shifts in trade patterns, with increasing demand in Asian countries combining with a stronger world focus on environmental concerns and an expectation of a new climate change agreement to be led by the United Nations. Despite this, the OPEC nations still continue to aim for stability across the oil market.
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Which are the Current Member Countries of OPEC?
Currently, the countries which are members of OPEC include the following:
Sudan issued an application for membership of OPEC in October 2015 and are currently awaiting a formal decision as to whether or not their application has been successful.
Production Comparison of OPEC Countries
|Country||Region||Membership Years||Population||Area||Oil Production||Proven Reserves|
|Algeria||Africa||1969 – present||39542166||2381740||1721000||12200000000|
|Angola||Africa||2007 – present||19625353||1246700||1756000||9060000000|
|Ecuador||South America||1973-1992 and 2007 – present||15868396||283560||556000||8240000000|
|Gabon||Africa||1975 – 1994 and 2016||1705336||267667||213000||2000000000|
|Indonesia||South East Asia||1962-2008 and 2016 – present||255993674||1904569||917000||3740000000|
|Iran||Middle East||1960 – present||81824270||1648000||3377000||157300000000|
|Iraq||Middle East||1960 – present||37056169||437072||3364000||140300000000|
|Kuwait||Middle East||1960 – present||2788534||17820||2767000||104000000000|
|Libya||Africa||1962 – present||6411776||1759540||516000||48470000000|
|Nigeria||Africa||1971 – present||181562056||923768||2428000||37140000000|
|Qatar||Middle East||1961 – present||2194817||11437||2055000||25240000000|
|Saudi Arabia||Middle East||1960 – present||27752316||2149690||11624000||268350000000|
|United Arab Emirates||Middle East||1967 – present||5779760||83600||3474000||97800000000|
|Venezuela||South America||1960 – present||29275460||912050||2685000||297740000000|
How Many OPEC Meetings are There Each Year?
The supreme authority of the OPEC organisation is the OPEC conference, and this is made up of delegations which are normally spearheaded by the oil minister of each respective member country. The OPEC Secretary General is the organisation’s chief executive. Ordinarily, the Conference takes place at their headquarters in Vienna, Austria, and in normal circumstances it occurs a minimum of twice per annum, with extra meetings taking place as and when required. Generally, the Conference operates with the principle of unanimity, with each member having one vote and every country having to pay the same fee for membership into an annual budget. In practice, as Saudi Arabia stands out from the other member countries as being the biggest and most profitable oil exporting country worldwide, it has the capacity to act as a swing producer, balancing global markets and therefore serves as the de facto leader of OPEC.
When is the Next OPEC Meeting?
Here is the OPEC meeting schedule for the upcoming OPEC meetings:
OPEC Meeting Dates for 2016
|June||2nd||169th Ordinary OPEC meeting in Vienna, Austria|
|November||30th||170th Ordinary OPEC meeting in Vienna, Austria|
There is also an informal OPEC meeting which has been scheduled to coincide with the 15th International Energy Forum in Algeria. This will take place between 26th and 28th September 2016.
What is the Significant of OPEC Meetings for Traders?
Fundamental analysis is always important for a trader who wishes to achieve the best possible success in the financial markets, and keeping a close eye on the economic calendar and economic indicators is a major part of this. OPEC meetings have a significant impact upon the global prices of oil, which in turn affects the prices of numerous other assets and also impacts upon global economies and currencies. Having an awareness of the dates upon which an OPEC meeting has been scheduled enables an investor to prepare in advance for the volatility such an event brings in its wake and they will therefore be able to use this information to either avoid making any trades until the outcomes of the meeting are known, or alternatively to take a calculated risk of placing their chosen trade at this time in order to capitalise upon the expected outcomes of the OPEC Conference.
When Forex trading, it is important to know that global currencies are affected by economic factors like geopolitical events, interest rates, supply and demand and economic growth. As the economic growth of a country as well as its exports are all linked to domestic industry, it is important to know that the pricing of commodities like oil will influence the currencies of some countries more than others. When there is a decline or indeed an increase in the price of oil, there will be a major effect upon the economies of certain countries, with three of the currencies which are most impacted by commodity prices being the New Zealand Dollar, Canadian Dollar and Australian Dollar. This information is obvious vital to know if you are a keen Forex trader, especially if you have an interest in profiting from trading these specific currency pairs. The decisions taken at OPEC meetings, such as whether to maintain or freeze oil production, will of course have a measurable impact upon the value of the affected currencies and this data can be used to inform the trades being placed in the volatile market that surrounds these key economic events.
If you are a trader who is keen to avoid taking risks with your money, you should steer clear of investing in currency pairs or other affected assets around the time of the scheduled OPEC meetings as this period traditionally sees a considerable amount of price movement and the chances of making a loss are much higher. Alternatively, you may wish to pay close attention to the expert predicted outcomes of the OPEC meetings and place your trades in accordance with these predictions in an attempt to capitalise upon this volatility and in the hope of gaining a higher profit.