In an announcement on Thursday, OPEC revealed that Brazil is set to become a part of the Charter of Cooperation within OPEC+, a coalition of oil-producing nations consisting of the Organization of the Petroleum Exporting Countries (OPEC) and its affiliated allies.
During the 36th OPEC+ ministerial meeting conducted virtually, Brazil’s Minister of Mines and Energy, Alexandre Silveira de Oliveira, officially confirmed Brazil’s forthcoming inclusion in the group, marking a significant step for the country.
As the largest oil producer in South America and ranking among the top 10 global crude producers, Brazil presently yields approximately 3.2 million barrels of crude oil per day. The OPEC “2023 World Oil Outlook” report, released in October, anticipates sustained medium-term growth in Brazil’s crude oil production.
Before the recent ministerial meeting, OPEC had not disclosed Brazil’s participation, which was initially slated for an in-person gathering on November 26 but was rescheduled by four days and shifted to an online format.
Market analysts foresee Brazil’s accession to OPEC+ as a move that will enhance the group’s impact on the oil market. With Brazil’s inclusion, OPEC+ now comprises 23 significant oil-exporting nations, encompassing 13 OPEC member states and their 10 associated allies.
The formation of OPEC+ in late 2016 was aimed at collectively stabilizing the global oil market, as highlighted on the OPEC website, signifying a concerted effort among participating nations.