OPEC Meaning and Why It Moves Oil and Currencies

OPEC, the Organization of the Petroleum Exporting Countries, is a group of oil-exporting nations that sets production targets for its members. Its decisions move the oil price, oil CFDs and oil-linked currencies.

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Last updated 29 October 2026

OPEC, the Organization of the Petroleum Exporting Countries, is a group of oil-exporting nations that sets production targets for its members to steer the oil market. When OPEC, or the wider OPEC+ group, agrees to cut or raise output, the oil price reacts, and so do oil CFDs and the currencies of oil exporters.

The commodity currencies lesson shows how the oil price feeds into the currencies of the countries that export it.

Who is in OPEC and what is OPEC+?

OPEC was founded in 1960 by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela; OPEC+ is the wider group formed in 2016, when OPEC agreed output deals with ten other producers, Russia among them. Its members are oil exporters in the Middle East, Africa and South America.

The US Energy Information Administration (EIA) estimates that OPEC produced 35% of the world's crude oil in 2025, or 31% without the United Arab Emirates, which left the group with effect from 1 May 2026. With its partners, OPEC+ meets to set production targets.

How does OPEC move the oil price?

OPEC moves oil through supply: the EIA notes that oil prices have historically tended to rise when OPEC cuts its production targets, and that low spare capacity adds a risk premium. Saudi Arabia, the largest producer, carries the most weight. The effect is weaker when members do not stick to their targets.

Markets also price in expected decisions before the meeting, so the surprise against what was expected drives the move.

Why does OPEC matter for currencies?

OPEC decisions reach currencies through the oil price: a higher price brings oil exporters more dollar earnings, which tends to support their currencies, and raises fuel costs for oil importers. For importers, dearer oil adds to inflation and widens the trade gap, which can weigh on their currencies instead.

So the same OPEC cut can lift one currency and weaken another. Before a meeting, note which of your open pairs include the currency of an oil exporter or a large oil importer, and size those positions for a bigger move.

Worked example: OPEC+ cut on a Brent CFD

OPEC+ announces a larger cut than expected and Brent rises from $80.00 to $83.20 a barrel. You bought 1 lot of a Brent CFD with a 100-barrel contract (check the Specification window, since contract sizes differ by symbol) at $80.00.

Step Calculation Result
Move $83.20 − $80.00 $3.20 a barrel
Move in percent $3.20 ÷ $80.00 4%
Result on 1 lot $3.20 × 100 barrels $320
Result on 0.10 lot $3.20 × 10 barrels $32

How do you follow OPEC news in MetaTrader 5?

In MetaTrader 5 you follow OPEC news through the economic calendar, which lists OPEC and OPEC+ meeting dates, while the oil CFDs sit in Market Watch under your broker's energy symbols. Watch the spread around the announcement: it can widen while the news hits, as the trading the news lesson shows.

Does an OPEC cut always push oil prices higher?

No: the market trades the gap between the OPEC decision and what was expected, so a cut does not always send oil higher. A cut that matches forecasts can leave the price flat, while a smaller cut than expected can push it down.

Read the expectations in the days before the meeting so you know what would count as a surprise.

Sources

Learn it properly in the full lesson: Commodity Currencies AUD, CAD and NZD: How the Link Works

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