OPEC+
OPEC
OPEC+ is the alliance of the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, with other producers such as Russia; by adjusting output, it has a major influence on global oil prices.
In plain terms
OPEC+ is the oil producers' output-management club. OPEC members and non-members such as Russia began coordinating production at the end of 2016, which gave rise to the name. When prices fall too far, they cut output; when prices run high or they want to defend market share, they raise it.
Why it matters
The group supplies a large share of the world's crude, so a single meeting can change the direction of oil prices. Members' interests differ, though, and agreed cuts are not always fully honored; rising supply from outside the group, such as US shale, also limits its sway.
How it connects to markets
- Cuts announced or extended: oil and energy stocks tend to rise, and inflation worries grow
- Output increases: lower oil prices, a boost for airlines and chemical makers, and pressure on producers' budgets and currencies
- Outcomes are often leaked in advance, so markets react most to surprises