Brazil is set to join OPEC+ next year
South America’s largest oil producer is to become a member of a broader coalition formed by the Organization of Petroleum Exporting Countries.
Brazil is set to sign the Charter of Cooperation of OPEC+, a broader group set up by the Organization of the Petroleum Exporting Countries (OPEC), in January 2024, according to reports.
The announcement came at the 36th OPEC+ ministerial meeting on Thursday, attended by Alexandre Silveira, Brazil’s minister of mines and energy. A full technical analysis is still pending, as is a formal sign-off from President Luiz Inacio Lula da Silva.
Brazil currently produces around 3.2 million barrels of crude per day and is expected to see solid medium-term crude production growth, according to an OPEC report published in October. The country is the biggest oil producer in South America and ranks among the world’s top 10 crude producers.
[See more: Exports of Brazilian oil to China are set to soar]
Founded in September 1960, OPEC counts five countries as founding members: Iraq, Iran, Kuwait, Saudi Arabia and Venezuela. Sixteen other countries have joined in the decades since and three – Qatar, Indonesia and Ecuador – have left. The membership currently stands at 13 member countries.
OPEC formed the OPEC+ coalition in 2016, with 10 of the world’s major non-OPEC oil-exporting nations including Russia. The OPEC+ grouping represents around 40 percent of the world’s oil production.
News of the announcement raised questions about the voluntary cap of 2.2 million barrels per day on OPEC+ members, set to begin early next year. The head of state-owned Petrobras rejected the idea, noting that as a non-voting member, Brazil is not required to cap its production. Compliance with the measure would require cutting production in the country by more than 30 percent.
