Brazil is set to become a member of the influential OPEC+ oil producers’ alliance, a coalition comprising some of the world’s major oil-producing nations. This development was confirmed by Brazil’s Energy Minister, Alexandre Silveira, during a recently held OPEC+ meeting. The meeting, which was delayed, focused on discussing strategies for oil output in 2024 amidst fluctuating prices due to unstable demand recovery in China, geopolitical tensions, and uncertainties surrounding oil supplies from Iran and Venezuela, both of which are under U.S. sanctions.
In a statement at the meeting, Minister Silveira revealed that Brazil’s President Lula da Silva had approved the country’s entry into the OPEC+ cooperation charter, effective from January 2024. Silveira emphasized the need for a thorough analysis of the charter by Brazilian technical experts, adhering to the government’s protocol.
The OPEC+ document of cooperation, a fundamental framework for the coalition, requires acceptance by all its member countries. The Brazilian Energy Ministry, in response to inquiries about Brazil’s membership, indicated that they had received an invitation to join OPEC+ and were in the process of evaluating the implications.
It remains unclear whether Brazil will need to implement any production cuts as a result of this new membership. Both OPEC+ and its subset, OPEC, have been actively seeking new members to expand their influence and market share. The inclusion of additional aligned producers would potentially enhance the coalition’s ability to affect global supply, inventories, and oil prices.
Brazil’s impending membership in the OPEC+ group, primarily led by Saudi Arabia and Russia, follows invitations extended to Saudi Arabia, Iran, and the United Arab Emirates to join the BRICS group of emerging markets, which includes Rio de Janeiro. This move marks a significant step for Brazil in the global energy sector, positioning it within a powerful circle of oil-producing nations.