OPEC is an international organization founded to regulate the volume of oil production in order to influence the level of supply of this raw material, in order to maintain a certain price level.
In order to properly develop a policy and respond to changes in demand in time, the cartel actively monitors the market and monitors the state of the world economy and individual countries.
OPEC publishes its own research and forecasts in a monthly report published after the first decade of each month. The multi-page document contains forecasts on the level of oil prices, the state of the global mining industry and the prospects for its development.
The impact of the OPEC report on oil prices and the stock market
The impact of the report varies depending on the current situation on the energy market. Traders pay the most attention to the report in extreme conditions of rising oil prices and its fall, actively monitoring how the participating countries comply with the terms of the preliminary agreements reached at the OPEC summits.
These meetings are aimed at achieving an artificial shortage or oversupply of oil production in order to regulate the "overheating" of oil quotes or limit their fall. Each country receives quotas, which it must adhere to before the decision on their cancellation or revision at the next summit.
It is this part of the published report that affects the price of oil, traders compare the real production/export indicators with previously reached agreements. A negative discrepancy affects the growth /decline quotes of all instruments related to petroleum products, as well as the stock market, where falling stocks can lead to a decrease in indices.
OPEC forecasts are a leading indicator of the development of the world economy
Investors are monitoring the level of changes in the preliminary forecast of oil consumption by the OECD countries and the level of overall global demand. The OPEC report monthly indicates this figure in millions of barrels, economically justifying the conclusions if the situation has changed in a particular country or economic bloc.
To the market Forex these data affect indirectly-consistent negative trends in oil-dependent economies lead to an unambiguous fall in the national currency, and the global crisis, marked by a decline in energy consumption, strengthens the exchange rate US dollar to all others currencies.
Interesting facts
In the XXI century, there was a significant weakening of the influence of OPEC countries on the oil market, so the organization resorted to concluding an agreement on limiting production with other countries that are not part of a cartel.
In the future, experts expect that shale oil will change the flow of raw materials, and scientific and technological progress and the development of electric vehicles will reduce consumption by 50%.