Brazil confirms joining OPEC+ from next year, minister says 'all set'

Brazil on Thursday (Nov 30) confirmed that it will be joining the OPEC+ group of oil-producing countries in January 2024 after the technical analysis of the charter to enter into a cooperation is completed, said the country's Mines and Energy Minister Alexandre Silveira, although there is no clarity on the nature of Brazil's participation.

The office of President Luiz Inacio Lula da Silva confirmed that they have received the invite during his visit to Saudi Arabia, but added that he has not responded formally to it.

Brazil's Mines and Energy Ministry and the president's office did not say whether Brazil will take part in OPEC+ as an observer or will become a full participant in the shared production quotas of the group.

Speaking to his OPEC+ peers, Mines and Energy Minister Alexandre Silveira expressed the country's eagerness to formally enter the group at a future meeting to be held in Vienna, after its charter's technical review for cooperation.

"It's all set. But there is a phase of detailed analysis by our technical team of the document we just received, which is part of the protocol in Brazil," said Silveira, in Portuguese amid a virtual meeting, where his comments received a standing ovation from OPEC+ ministers.

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OPEC+ announces Brazil's joining from January 2024

The confirmation from Brazil came after the oil cartel announced that Brazil, which is a major producer, will soon become a part of the OPEC+.

Brazil is among the top 10 producers in the world and has been Latin America's largest oil producer since 2016.

As per pricing agency Argus Media, the crude production reached a record 3.7 million barrels per day in September, which is a nearly 17 per cent increase from a similar month last year and a 6.1 per cent increase from August.

The ministers of the 13-member Organisation of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and its 10 partners were holding a meeting to discuss future output cuts for boosting prices.

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"The meeting welcomed Alexandre Silveira de Oliveira, Minister of Mines and Energy of the Federative Republic of Brazil, which will join the OPEC+... starting January 2024," said OPEC, in a press release.

"Considering that Brazil is a large oil producer and is driving oil production growth it is important to have them on board, but it seems that they are not cutting production like Mexico, so would conclude with: good for OPEC+, less relevant for oil market balances," said UBS analyst Giovanni Staunovo.

(With inputs from agencies)