Brazil Set To Join OPEC+ From January

Brazil is set to join the OPEC+ group of oil-producing countries which includes Saudi Arabia and Russia from January, an OPEC+ delegate said.

“This is a historic moment for Brazil and the energy industry and we look forward to joining this distinguished group,” Brazilian Minister of Mines and Energy, Alexandre Silveira de Oliveira said in a speech to OPEC+ ministers during a virtual meeting.

“The OPEC+ agreement has effectively protected the stability of oil markets,” he said.

Meanwhile, Silveira didn’t provide details on Brazil’s membership, or whether it would participate in quotas.

However, 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.

“Brazil benefits significantly from the stability of oil and energy markets,” Silveira said.

Report says the addition of Brazil to the 10 existing OPEC+ allies led by Russia is a major coup for the cartel, which has struggled to reach a consensus on cuts to arrest weak oil prices. Platts, part of S&P Global Commodity Insights, last assessed benchmark-dated Brent crude at $82.28/b on Nov. 29.

Brazil currently produces around 3.2 million b/d of crude and is a major supplier to China, according to S&P Global data.

In October, a high-level OPEC delegation led by Secretary General Haitham al-Ghais met with Silveira in Brasilia. Also in attendance was Jean-Paul Prates, CEO of state-controlled oil giant Petrobras.

REUTERS/Christopher Ojilere