OPEC+ is a group of oil-producing countries led by Saudi Arabia and Russia. It meets regularly to decide how much oil its members will pump. Between them, they produce a large share of the world's oil, so their decisions can move the price at once.
The textbook reading
- Output cuts: usually good for oil.
- Output increases: usually bad for oil.
What catches people out
As with any big event, what counts is the surprise. If everyone expected a cut, the price may barely move, and a smaller cut than expected can even push oil down. Members also sometimes pump more than they agreed to, so traders watch what is actually produced.