Brazil is set to join the OPEC+ group of oil-producing countries which includes Saudi Arabia and Russia from January 2024, an OPEC delegate said.
Brazilian Minister of Mines and Energy Alexandre Silveira de Oliveira addressed OPEC+ ministers virtually, saying, “This is a historic moment for Brazil and the energy industry and we look forward to joining this distinguished group.”
“The OPEC+ agreement has effectively protected the stability of oil markets,” he said.
Delegates earlier told S&P Global Commodity Insights that the country -which produces mostly medium-sweet crude from its offshore basins isn’t expected to participate in cuts.
According to Silveira “Brazil benefits significantly from the stability of oil and energy markets.”
According to the report, the addition of Brazil to the ten existing OPEC+ allies led by Russia is a major coup for the cartel, which has struggled to reach an agreement on cuts to stabilize oil prices. On Nov. 29, Platts, a division of S&P Global Commodity Insights, estimated benchmark-dated Brent crude at $82.28/b.
According to S&P Global data, Brazil currently produces around 3.2 million b/d of crude and is a major supplier to China.
A high-level OPEC delegation led by Secretary General Haitham al-Ghais met with Silveira in Brasilia in October. Jean-Paul Prates, CEO of the state-controlled oil giant Petrobras, was also present.
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