Next January, Brazil will join the OPEC+ alliance, made up of the thirteen partners of the Organization of the Petroleum Exporting Countries (OPEC) and ten other oil-producing nations, including Russia, Kazakhstan and Mexico, according to an OPEC statement.
The unexpected announcement was made at the end of the OPEC+ ministerial conference, held virtually this Thursday, through a brief note in which it is revealed that the Brazilian Minister of Mines and Energy, Alexandre Silveira, spoke at the meeting.
“The meeting welcomed HE Alexandre Silveira de Oliveira, Minister of Mines and Energy of the Federative Republic of Brazil, who will join the OPEC+ Cooperation Charter as of January 2024,” indicates OPEC.
The aforementioned “Letter of Cooperation” is the founding document of the OPEC+ alliance, signed in 2016. Brazil, which is currently the largest Latin American oil producer, will become partner number 24 and the third in the region, along with the aforementioned Mexico and
Venezuela, one of the five countries that founded OPEC in 1960 and that today has the largest crude oil reserves in the world.
Integrating this alliance that today, with its 23 partners, is responsible for nearly 40% of the world’s crude oil supply, means participating in the readjustments of production levels that the group applies to try to stabilize the “black gold” market.
The OPEC+ Energy and Petroleum Ministers reaffirmed their “permanent commitment” to guarantee a “stable and balanced” oil market, reads the aforementioned statement.
They also confirmed the current pumping cuts, which total 3.66 mbd without the voluntary reductions that Saudi Arabia and Russia have been applying since last July, for a total of another 1.3 mbd.
In addition, they indicated that they foresee moderate readjustments of the national quotas of Angola, Congo and Nigeria in 2024, although these are subject to studies by three independent specialized entities on the productive capacity of these nations.
However, other partners are expected to announce new voluntary cuts on their own, that is, non-binding from January, while Riyadh and Moscow would extend theirs beyond December 31.
The announcement of Brazil’s accession comes a day after a visit by the Brazilian president, Luiz Inácio Lula da Silva, to Riyadh, where he was received by the kingdom’s crown prince, Mohamed bin Salmán.
The next OPEC+ ministerial conference has been called for June 1, 2024 in Vienna.
Today’s meeting coincided with the opening of the COP28 climate summit in Dubai, where OPEC defends the need to continue investing in the oil industry.