A CFD (Contract for Difference) is a derivative financial instrument where two parties (a trader and a broker) agree to exchange the difference in the price of an asset between the time the position is opened and closed.
You do NOT own the underlying asset (stock, gold, index, etc.).
You are only trading price movements.
How CFD trading works (step by step)
Long vs Short (very important)
🔼 Going Long
You profit when the price increases.
Example:
Buy at 100
Sell at 110
Profit = +10
🔽 Going Short
You profit when the price decreases.
Example:
Sell at 100
Buy back at 90
Profit = +10
⚠️ This ability to profit in falling markets is a key feature of CFDs.
Leverage explained in depth
Leverage allows you to control a large position with a small amount of capital.
Leverage
Margin Required
1:10
10%
1:50
2%
1:100
1%
1:500
0.2%
⚠️ Risk of leverage
A 1% price move with 1:100 leverage = 100% gain or loss
Losses can exceed expectations if risk is unmanaged
Costs in CFD trading
1️⃣ Spread
Difference between Bid and Ask
Paid when opening a trade
2️⃣ Commission
Some brokers charge commission (usually on stocks)
3️⃣ Overnight / Swap fee
Charged if you hold a position overnight
Based on interest rate differentials
CFD vs owning the asset
Markets available via CFDs
CFDs allow access to global markets from one account:
Forex – currencies
Commodities – gold, oil, silver
Indices – Nasdaq, Dow Jones
Stocks – global equities
Cryptocurrencies – price exposure only
Are CFDs regulated?
CFDs are legal and regulated in many jurisdictions
Regulation depends on the broker’s license (FCA, ASIC, CySEC, etc.)
A centralized market is a market in which buying and selling activities take place at a single central location or through a central system. All transactions are processed and supervised by a central authority or platform.
Key characteristics
Operated and regulated by a central authority
Transparent and publicly quoted prices
High liquidity due to the concentration of buyers and sellers
Systemic risk if the central platform fails or is disrupted
Decentralized Market
A decentralized market is a market without a single central authority, where buyers and sellers trade directly with each other through a network or bilateral agreements.
Risk management is the process of identifying, assessing, and controlling threats or risks that could negatively impact an individual, organization, or project. The goal is to minimize the potential losses or harm by planning how to handle uncertainties effectively.
In finance or trading, for example, risk management involves strategies to limit potential losses—such as setting stop-loss orders, diversifying investments, or controlling position sizes—so that even if the market moves unfavorably, the damage is limited.
Risk management is crucial for capital preservation and achieving long-term objectives. Even the top global financial institutions prioritize it above all else.
Market sessions refer to the specific time periods during which major global financial markets are open. Because financial markets operate across different time zones, trading activity follows a continuous cycle, with varying levels of liquidity and volatility throughout the day.
Key Takeaway
Trading activity is not evenly distributed throughout the day. Understanding market sessions helps traders choose the right time to trade, manage risk, and optimize performance.
Leverage is the use of borrowed resources (money or financial instruments) to increase exposure to an investment or activity, aiming to amplify potential returns.
Leverage = controlling a larger position with a smaller amount of your own capital
How it works
When a company or investor uses debt instead of only their own capital:
If returns are higher than the cost of debt, leverage amplifies profits
If returns are lower than the cost of debt, leverage amplifies losses
Behavioural Finance is a field of study that combines psychology and finance to understand how emotions, cognitive biases, and social factors influence investors’ decisions and financial markets.
Key Points:
Unlike traditional finance, which assumes investors are fully rational, behavioural finance acknowledges that people often make irrational decisions.
It studies common biases such as overconfidence, herding behavior, loss aversion, and confirmation bias.
These biases can lead to market anomalies like bubbles, crashes, and mispricing of assets.
Understanding behavioural finance helps investors and financial professionals recognize and mitigate emotional and cognitive errors in decision-making.
Impacts on Financial Markets
Market bubbles and crashes often result from collective irrational behaviour driven by biases.
Asset prices may deviate from their true value because of emotional trading.
Investors’ decisions are influenced by mood, social pressures, and cognitive shortcuts rather than purely rational analysis.
Practical Applications
Investment Strategies: Incorporating behavioural insights to improve decision-making and portfolio management.
Risk Management: Recognizing biases helps in avoiding excessive risk-taking or panic selling.
Financial Education: Teaching investors about common biases to foster better habits.
Market Regulation: Regulators use behavioural finance to design policies protecting investors.
Summary
Behavioural Finance bridges the gap between psychology and economics, explaining why markets are not always efficient and why investor behaviour often deviates from rational models. Understanding these concepts can lead to smarter investing and better financial outcomes.
The Evolution of Technical Analysis reflects how market analysis has developed over time, from simple price observations to sophisticated data-driven models used in modern trading.
Technical analysis has evolved from visual chart reading to advanced, technology-driven systems, remaining a vital tool for understanding market behavior and timing trades.
“Without a solid foundation and fundamental knowledge, it is difficult to achieve profits or build wealth. Successful individuals and companies never rely solely on technical knowledge to grow their wealth—they combine it with strong fundamentals and a clear vision for long-term growth.“
The International Financial System (IFS) is the global framework that enables the flow of money, capital, and financial services across countries. It connects national financial systems and facilitates international trade, investment, and economic cooperation. The international financial system consists of institutions, markets, rules, and instruments that allow governments, businesses, and individuals to conduct cross-border financial transactions efficiently and securely.
Functions of the International Financial System
Facilitates international trade and investment
Enables global capital allocation
Supports economic growth and development
Promotes financial stability and risk management
Provides mechanisms for crisis prevention and resolution
A well-functioning international financial system helps reduce uncertainty, manage global financial risks, and support sustainable economic growth worldwide.
Portfolio Management is the process of selecting, managing, and monitoring a collection of investments (a portfolio) to achieve specific financial goals while balancing risk and return. Portfolio management involves deciding what to invest in, how much to invest, and when to adjust investments based on an investor’s objectives, risk tolerance, time horizon, and market conditions.
Main Components of Portfolio Management
Asset Allocation Distributing investments among different asset classes such as stocks, bonds, commodities, cash, or alternative assets to manage risk.
Investment Selection Choosing specific securities or instruments within each asset class.
Risk Management Identifying, measuring, and controlling risks through diversification and other strategies.
Performance Monitoring Tracking portfolio performance against benchmarks and investment objectives.
Rebalancing Periodically adjusting the portfolio to maintain the desired asset allocation.
Types of Portfolio Management
Active Portfolio Management: Managers actively buy and sell assets to outperform the market.
Passive Portfolio Management: Focuses on matching market performance, often through index funds.
Discretionary Portfolio Management: Managers make decisions on behalf of clients.
Non-discretionary Portfolio Management: Managers provide advice, but final decisions are made by clients.
The main goal of portfolio management is to maximize returns for a given level of risk or minimize risk for a desired level of return.
Derivative securities are financial instruments whose value is derived from the value of an underlying asset, index, or rate. Common underlying assets include stocks, bonds, commodities, currencies, interest rates, or market indexes. Derivatives are primarily used for hedging risk, speculation, or arbitrage.
Main Types of Derivative Securities
Futures Contracts Standardized agreements traded on exchanges, obligating the parties to buy or sell an asset at a predetermined price on a specified future date.
Options Contracts granting the holder the right, but not the obligation, to purchase (call option) or sell (put option) an asset at a specified price within a defined time period.
Swaps Customized, over-the-counter agreements between parties to exchange cash flows or financial instruments, commonly used to manage interest rate or currency risks.
Forwards Private, non-standardized contracts between two parties to buy or sell an asset at an agreed price on a future date, typically traded over-the-counter.
Markets for Trading Derivative Securities
Exchange-Traded Market (ETM): This is where standardized derivative contracts are traded on formal exchanges such as the Chicago Mercantile Exchange (CME), NYSE, or Vietnam’s Commodity Exchange (MXV).
Over-The-Counter (OTC) Market This market involves direct trading between parties without going through formal exchanges. Contracts are often customized according to the agreements between the parties.
Liquidity Providers are entities or institutions that supply the market with liquidity, meaning they make it easier to buy or sell assets without causing significant price changes. They ensure there’s enough volume of assets available so trades can happen smoothly and quickly.
More details:
In financial markets (like stocks, forex, or cryptocurrencies), liquidity providers often include banks, market makers, or large financial firms.
They place buy and sell orders on exchanges or trading platforms to maintain active markets.
By doing so, they reduce the bid-ask spread, which is the difference between the buying price and selling price, making trading more efficient and less costly.
For example, in forex trading, liquidity providers are usually big banks or financial institutions that offer currency prices to brokers and traders.
Financial companies without liquidity providers become scammers by using large price fluctuations to cause clients to incur losses.
The Central Bank plays a critical role in a country’s financial and economic system. It is the main authority responsible for regulating and supervising the banking sector, implementing monetary policy, and maintaining financial stability. The Central Bank controls the money supply and interest rates to achieve economic goals such as controlling inflation, supporting employment, and fostering sustainable economic growth. Additionally, it acts as a lender of last resort to financial institutions in times of crisis, manages the country’s foreign reserves, and oversees the issuance of the national currency. Through these functions, the Central Bank helps ensure confidence in the financial system and promotes the overall health of the economy.
Main Functions of the Central Bank
Monetary Policy Implementation Regulates money supply and interest rates to control inflation, stabilize exchange rates, and promote economic growth.
Currency Issuance Sole authority to issue and manage the national currency in circulation.
Lender of Last Resort Provides emergency liquidity support to financial institutions facing difficulties to maintain system stability.
Bank Regulation and Supervision Ensures the safe and sound operation of commercial banks and financial organizations.
Maintaining Financial Stability Prevents and manages systemic risks to protect the stability of financial markets.
Foreign Exchange Reserve Management Holds and manages foreign currency reserves and intervenes in the forex market when necessary.
Government’s Banker Manages government financial transactions, public debt issuance, and administration.
Credit Control Coordinates credit volume and capital costs to foster balanced economic development.
A Financial Services License is a certification issued by the financial regulatory authority that allows an organization or individual to legally provide financial services such as investment advice, securities brokerage, fund management, insurance, lending, and other related financial services.
In each country, this license is issued by the corresponding financial regulator, for example:
United States: Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA)
United Kingdom: Financial Conduct Authority (FCA)
Australia: Australian Securities and Investments Commission (ASIC)
Canada: Canadian Securities Administrators (CSA) and provincial regulators such as the Ontario Securities Commission (OSC)
Singapore: Monetary Authority of Singapore (MAS)
Hong Kong: Securities and Futures Commission (SFC)
European Union: National competent authorities in each member state, coordinated under the European Securities and Markets Authority (ESMA)
Scope of Activities The license clearly defines the scope of permitted services, such as investment advice, securities brokerage, fund management, insurance, consumer lending, financial payment services, etc.
Financial capacity and qualified professional personnel as required
Risk management policies, compliance with laws and anti-money laundering regulations
Internal procedures, reporting systems, and activity monitoring
Compliance Responsibilities License holders must strictly comply with regulations, including:
Undergoing audits and inspections when required
Periodic reporting of financial activities
Compliance with risk management and customer protection regulations
Therefore, any enterprise that conducts marketing activities to attract customers without being granted a financial services license is undoubtedly operating as a fraudulent entity.
Financial markets play a crucial role in the global economy by facilitating the efficient allocation of resources and capital. These markets provide a platform where buyers and sellers can trade financial instruments such as stocks, bonds, currencies, and derivatives. By enabling the transfer of funds from savers to borrowers, financial markets support business growth, innovation, and economic development. Additionally, they offer investors opportunities to diversify their portfolios and manage risks.
The main types of financial markets include the stock market, bond market, crypto market, money market, and foreign exchange market, each serving distinct functions but collectively contributing to market liquidity and price discovery. Understanding the dynamics of financial markets is essential for investors, policymakers, and businesses to make informed decisions and sustain economic stability.
Stock Market
The stock market is a vital component of the financial system where shares of publicly traded companies are bought and sold. It serves as a marketplace that connects companies seeking capital with investors looking for potential returns. By issuing stocks, companies can raise funds to expand their operations, invest in new projects, or pay off debt. For investors, the stock market offers an opportunity to own a portion of a company and potentially benefit from its growth through price appreciation and dividends. The stock market also plays a key role in reflecting the overall health of an economy, as stock prices often react to economic indicators, corporate performance, and global events. Major stock exchanges like the New York Stock Exchange (NYSE) and Nasdaq provide structured environments that ensure transparency, liquidity, and regulatory oversight to protect investors.
Bond Market
The bond market, also known as the debt market or fixed-income market, is where investors buy and sell bonds—essentially loans made to governments, corporations, or other entities. When an organization issues a bond, it borrows money from investors and agrees to pay back the principal amount on a specific maturity date, along with periodic interest payments called coupons. The bond market plays a critical role in financing large projects, government spending, and corporate growth by providing a stable source of long-term funding. For investors, bonds are generally considered lower-risk investments compared to stocks, offering steady income and portfolio diversification. The bond market also helps influence interest rates and overall economic conditions, as central banks and policymakers monitor bond yields to guide monetary policy. Major participants in the bond market include governments, financial institutions, pension funds, and individual investors.
Commodities
The commodities market is a marketplace where raw materials and primary agricultural products are bought, sold, and traded. These commodities include physical goods such as oil, gold, natural gas, coffee, wheat, and metals. The market plays a vital role in the global economy by allowing producers, consumers, and investors to manage price risks through contracts like futures and options. Commodities markets help stabilize prices by providing transparency and liquidity, enabling participants to hedge against fluctuations caused by factors such as weather, geopolitical events, and supply-demand imbalances. There are two main types of commodities markets: the spot market, where goods are traded for immediate delivery, and the derivatives market, where contracts for future delivery are exchanged. Investing in commodities can provide portfolio diversification and serve as a hedge against inflation, attracting both individual and institutional investors worldwide.
Currencies Market (Forex)
The currencies market, commonly known as the foreign exchange market or Forex, is the largest and most liquid financial market in the world. It involves the buying and selling of different currencies, allowing businesses, governments, investors, and traders to convert one currency into another. Forex operates 24 hours a day, five days a week, across global financial centers, making it highly accessible. The market plays a critical role in facilitating international trade and investment by enabling currency conversion and helping manage exchange rate risks. Currency prices fluctuate constantly due to factors like economic indicators, interest rates, geopolitical events, and market sentiment. Traders in the Forex market range from large banks and multinational corporations to individual investors, all seeking to profit from currency movements or hedge against currency risks. Because of its high liquidity and volatility, the Forex market offers significant opportunities but also carries considerable risk.
Cryptocurrecy Market
The cryptocurrency market is a relatively new and rapidly evolving segment of the financial world where digital currencies like Bitcoin, Ethereum, and many others are traded. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized blockchain technology, which ensures transparency, security, and immutability of transactions. The market enables investors and traders to buy, sell, and exchange cryptocurrencies on various online platforms called exchanges. It has gained popularity due to its potential for high returns, innovation in financial technology, and the growing adoption of blockchain applications. However, the cryptocurrency market is known for its high volatility and regulatory uncertainty, which can lead to significant risks for participants. Despite these challenges, it continues to attract interest from retail investors, institutional players, and developers aiming to reshape the future of finance and digital assets.
The Participants of These Markets
A wide range of participants join financial markets, each with different goals and roles:
More information about these participants.
Individual Investors and Traders These are everyday people who buy and sell assets like stocks, bonds, currencies, or cryptocurrencies to grow their wealth, save for retirement, or speculate on price movements.
Institutional Investors Large organizations such as mutual funds, pension funds, insurance companies, and hedge funds. They invest significant amounts of capital to achieve long-term growth, manage risk, or generate income for their clients or beneficiaries.
Corporations Companies participate in financial markets to raise capital (by issuing stocks or bonds), hedge against risks (such as currency or commodity price changes), or invest surplus cash.
Governments and Central Banks Governments issue bonds to finance public spending, while central banks intervene in currency markets to stabilize exchange rates and implement monetary policy.
Market Makers and Brokers Market makers provide liquidity by continuously buying and selling assets, ensuring smoother trading. Brokers act as intermediaries, executing trades on behalf of clients.
Speculators Traders who seek to profit from short-term price fluctuations by taking on higher risks.
Hedgers Participants like farmers, manufacturers, or importers who use markets (especially commodities or Forex) to protect themselves from unfavorable price changes.
Each participant contributes to market liquidity, price discovery, and overall market efficiency.
Gold continued its strong rally in Asian trading on Tuesday, moving back toward record territory as rising geopolitical tensions after a U.S. strike on Venezuela boosted safe-haven demand for the metal.
Spot gold inched up 0.2% to $4,458.20 an ounce at 01:22 ET (06:22 GMT), while U.S. gold futures gained 0.4% to $4,469.10 per ounce.
Bullion had jumped 2.7% in the previous session—its biggest one-day advance in weeks—as investors sought refuge in precious metals amid growing global market uncertainty.
Although prices reached a record high of $4,549.71 per ounce last week before retreating on profit-taking, gold has since recovered and is again trading close to those peak levels.
Gold jumps as U.S. action in Venezuela and Fed rate-cut expectations fuel demand
The surge was mainly sparked by events in Venezuela, where U.S. troops carried out a surprise operation over the weekend that led to the arrest of President Nicolás Maduro, sharply intensifying geopolitical risks and unsettling commodity markets.
Officials said Maduro was taken to the United States to face long-standing narcotics-related charges and entered a not-guilty plea in a New York court on Monday.
According to Reuters, U.S. President Donald Trump is preparing to meet with executives from major American oil companies to discuss measures to increase Venezuela’s oil output.
Expectations of prolonged geopolitical tensions and potential policy changes have further strengthened gold’s role as a hedge against market volatility.
Gold also drew support from growing expectations that U.S. interest rates will continue to decline in 2026.
Markets are now factoring in two additional Federal Reserve rate cuts this year, an environment that typically benefits non-yielding assets like gold.
On Monday, Minneapolis Fed President Neel Kashkari noted that U.S. inflation has been easing gradually, strengthening the view that the central bank could have room to ease policy if price pressures keep moderating.
Investors are closely tracking upcoming U.S. economic data for further signals on the Fed’s policy direction. December’s nonfarm payrolls report, due Friday, is expected to be a crucial gauge of labor market strength and could shape rate expectations in the months ahead.
Silver and platinum climb as copper sets a new record
Other precious and industrial metals also traded firmly higher on Tuesday.
Silver surged 3% to $78.78 an ounce, while platinum gained 2% to $2,331.25 per ounce.
On the London Metal Exchange, benchmark copper futures rose 2.2% to a record $13,331.0 per ton. U.S. copper futures also advanced 1.5% to $6.07 a pound, marking their highest level on record.
According to ING analysts, copper’s continued rally has been driven by disruptions to mine supply and shifts in trade flows caused by tariffs imposed by U.S. President Trump.
Most Asian currencies fell on Monday as U.S. actions against Venezuela unsettled markets, while the Japanese yen weakened despite the Bank of Japan signaling potential further interest rate hikes.
The U.S. dollar gained from heightened safe-haven demand following Washington’s intervention in Venezuela and the capture of President Nicolas Maduro. U.S. President Donald Trump declared that the U.S. would maintain control over Venezuela until a new leader is chosen.
Meanwhile, the Chinese yuan stood out by holding firm at its strongest level in two and a half years. This strength came after Beijing announced additional stimulus measures in late December. Moderate services activity data did little to slow the yuan’s rise, supported by a series of robust midpoint fixes from the People’s Bank of China.
Dollar boosted by safe-haven buying in wake of Venezuela action
The dollar index and its futures each climbed about 0.3% during Asian trading, driven by increased safe-haven demand amid rising geopolitical tensions.
Over the weekend, the U.S. reportedly transported Nicolás Maduro to New York, where he is expected to face legal proceedings.
President Trump also issued threats toward other nations opposing U.S. policies, including Colombia and Iran, and reiterated his calls for the U.S. to take control of Greenland.
This military move, combined with Trump’s remarks, heightened global geopolitical uncertainty. Analysts cautioned that Washington’s actions might set a precedent for other major powers like China and Russia.
Japanese yen continues to weaken despite BOJ rate hike signals
The Japanese yen slipped further on Monday, with the USD/JPY pair rising 0.2%, hovering near levels last seen in early 2025.
The yen’s weakness persisted even after BOJ Governor Kazuo Ueda reaffirmed that the central bank would continue raising interest rates as economic and inflation targets align with forecasts.
However, Ueda’s remarks largely echoed the message from the BOJ’s December meeting, when rates were increased by 25 basis points.
The yen remained under pressure, with USD/JPY trading within ranges that have historically prompted government intervention. Yet, traders questioned Tokyo’s capacity for further currency market intervention amid growing concerns over the country’s expanding fiscal deficit.
Chinese yuan hits 2½-year high on stimulus optimism
The Chinese yuan stood out as the USD/CNY pair extended recent declines, dropping 0.2% to its lowest level since May 2023.
The yuan’s strength was driven by Beijing’s announcement of additional stimulus measures aimed at boosting consumer spending. In late December, the government unveiled a 62.5 billion yuan ($8.94 billion) program to extend subsidies on consumer electronics and other goods.
Additionally, the People’s Bank of China supported the yuan by setting a series of strong daily midpoint rates, further reinforcing the currency’s gains.
Private purchasing managers index (PMI) data showed that growth in China’s services sector slowed slightly in December, though it remained in expansion for the third consecutive year.
Meanwhile, broader Asian currencies weakened as U.S. actions in Venezuela dampened risk appetite. The Australian dollar (AUD/USD) declined nearly 0.2%, while the South Korean won (USD/KRW) rose 0.4%.
The Taiwan dollar (USD/TWD) remained flat, whereas the Singapore dollar (USD/SGD) gained 0.2%.
The Indian rupee (USD/INR) strengthened by 0.1%, firming back above the 90-rupee level.
The removal of Venezuela’s current leadership would likely signal a sharp shift in Washington’s stated objectives—from a focus on counter-narcotics pressure to a far more ambitious agenda: unlocking one of the world’s largest oil reserves and reopening the country to U.S. energy companies.
“The oil business in Venezuela has been a bust—a total bust—for a long period of time,” U.S. President Donald Trump told reporters on Saturday.
“We’re going to have our very large United States oil companies—the biggest anywhere in the world—go in, spend billions of dollars, fix the badly broken oil infrastructure, and start making money for the country.”
The central question for Trump’s administration is whether political change alone would be sufficient to revive an industry hollowed out by decades of mismanagement, corruption, and chronic underinvestment.
On paper, Venezuela’s oil potential is vast. Government figures put proven reserves at more than 300 billion barrels, the largest in the world, consisting largely of heavy crude prized by refiners along the U.S. Gulf Coast and in parts of Asia.
Analysts note that this heavy crude complements U.S. shale production, which is typically lighter and less suited to certain refinery configurations. In theory, Venezuela’s reserves could once again play a meaningful role in global energy markets.
In practice, however, the obstacles are formidable. Venezuela currently produces less than one million barrels per day—a fraction of its output two decades ago. Infrastructure has deteriorated severely, skilled workers have fled the country, and oil fields, pipelines, ports, and refineries would require massive capital investment merely to restore reliable operations.
Even under optimistic scenarios, years of rebuilding would be required before production could rise meaningfully. Market conditions add another layer of complexity: global oil supplies remain ample, and prices below $60 a barrel reduce the incentive for large-scale, high-risk investment abroad.
U.S. producers must therefore weigh whether capital is better deployed in stable domestic basins rather than in a country with a long history of expropriation and contract disputes.
Legal and institutional reform would also be indispensable. Venezuela would need to overhaul laws governing private investment, restructure roughly $160 billion in sovereign and quasi-sovereign debt, and resolve outstanding arbitration claims stemming from past nationalizations.
Without clear property rights and predictable regulatory frameworks, international oil companies are unlikely to commit billions of dollars, regardless of political change.
Security and governance challenges remain unresolved as well. Removing a leader does not automatically produce stability, and companies will wait to see whether a transitional government can maintain order, protect assets, and establish credible authority across the country.
The scale of reconstruction required extends far beyond oil extraction, encompassing financing, currency stabilization, and the rebuilding of core state institutions.
In that sense, unlocking Venezuela’s oil is ultimately less a question of geology than of politics, economics, and time.
OPEC+ delegates indicated that the group is expected to keep oil production steady at their upcoming meeting on Sunday, despite ongoing political tensions between key members Saudi Arabia and the UAE, as well as the recent U.S. capture of Venezuela’s president.
The Sunday meeting involves eight OPEC+ members—Saudi Arabia, Russia, the UAE, Kazakhstan, Kuwait, Iraq, Algeria, and Oman—who together produce about half of the world’s oil supply. This session follows a challenging 2025, during which oil prices plunged over 18%, marking their steepest annual decline since 2020 amid concerns over oversupply.
From April to December 2025, these eight members raised oil output targets by roughly 2.9 million barrels per day, representing nearly 3% of global oil demand. They agreed in November to pause further output increases for January through March 2026.
According to three OPEC+ sources, Sunday’s meeting is unlikely to alter this policy.
OPEC Faces Multiple Crises Amid Market and Political Challenges
Tensions between Saudi Arabia and the UAE escalated last month over a decade-long conflict in Yemen, when a UAE-aligned group seized territory from the Saudi-backed government. This crisis sparked the biggest rift in decades between the former close allies, exposing years of divergence on key issues.
Historically, OPEC has managed to navigate serious internal disputes—such as during the Iran–Iraq War—by prioritizing market stability over political conflicts. However, the group now faces multiple challenges. Russian oil exports remain under pressure from U.S. sanctions related to the Ukraine war, while Iran grapples with widespread protests and threats of U.S. intervention.
These overlapping crises put OPEC’s cohesion and its ability to manage the global oil market to a critical test.
On Saturday, the United States reportedly captured Venezuelan President Nicolás Maduro. U.S. President Donald Trump announced that Washington would assume control of the country until a transition to a new administration can be arranged, though he did not specify how this process would be carried out.
Venezuela holds the world’s largest proven oil reserves, surpassing even those of OPEC’s leader, Saudi Arabia. However, its oil production has sharply declined over the years due to chronic mismanagement and international sanctions.
Analysts caution that a significant increase in crude output is unlikely in the near future, even if U.S. oil majors follow through on the multibillion-dollar investments promised by President Trump.
THE ETERNAL SOVEREIGN 