OPEC+ announced that Brazil will join the oil alliance starting in January 2024, according to a statement issued, Thursday, by the 36th ministerial meeting of the OPEC member states of the Petroleum Exporting Countries and their allies.
Anticipation has prevailed in oil markets over the past few weeks to learn what the outcome of the OPEC+ Ministerial Follow-up Committee meeting will be, which was postponed for four days and held virtually today, especially after oil prices lost nearly 15% from their peak that they reached in September.
Yesterday, in the capital, Riyadh, Saudi Crown Prince Mohammed bin Salman received the President of the Federal Republic of Brazil, Luiz Inacio Lula da Silva. During the official discussions session between the two sides, they reviewed bilateral relations, strengthened joint cooperation, and discussed investment opportunities, in addition to discussing developments in the situation. Regional and international, according to the Saudi Press Agency.
Delegates of countries within OPEC+ stated earlier that Brazil was ready to join the alliance, but a Brazilian official said that it was still studying the benefits. This step would attract one of the most important new oil sources affecting the growth of global supply, to the alliance that is tightening restrictions on production.
According to Standard & Poor's Global data, Brazil's oil production is about 3.2 million barrels per day, and its exports reached an average of 1.8 million barrels per day in the third quarter of this year, an increase of 40% over the same period in 2022. Higher production growth helps Brazil and the United States are expected to raise global supplies by 1.7 million barrels per day this year to a record level.
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