Energy & metals
What is the OPEC meeting cycle and how do quotas alter long-term crude oil continuous forward curves?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
OPEC+ meets roughly every 1-2 months to set production quotas; quota cuts or increases shift expected future supply, steepening or flattening the WTI/Brent forward curve accordingly.
How it works
Announced cuts tighten near-term supply expectations, pushing the curve toward backwardation; quota increases add supply, often pushing curves into contango as inventories are expected to build.
An example
OPEC+'s late-2022 production cuts of 2 million bpd pushed near-term WTI futures into steep backwardation versus deferred contracts.
Risk & limitations
Compliance with quotas varies by member; actual output often diverges from announced targets, causing curve mispricing and reversals.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.