Brazil is set to become a member of the OPEC+ coalition, as announced by Brazilian Energy Minister Alexandre Silveira on November 30, 2023. The decision to join the coalition was revealed during a rescheduled OPEC+ meeting convened to deliberate on the oil output strategy for the upcoming year. This meeting occurred against a backdrop of sluggish prices due to uncertain demand recovery in China, geopolitical tensions, and apprehensions regarding oil supplies.
Minister Silveira confirmed President Lula da Silva’s approval for Brazil’s inclusion in OPEC+, stating, “I would like to conclude my words by informing you that the honorable President Lula confirmed our entry into the OPEC+ cooperation charter from January 2024.”
While expressing the need for a thorough review of the cooperation charter, Silveira emphasized, “It is important that our technical crew analyzes the content of the document that we just received, the charter of the cooperation. It is part of our government protocol to do this.”
The conditions of Brazil’s membership, particularly regarding potential production cuts, remained unclear at the time of the announcement.
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Both OPEC and the OPEC+ alliance are actively seeking additional members to bolster their market influence and coordinated oil policies. Recent reports had suggested OPEC’s interest in Guyana; however, the South American country has no intention of joining the oil cartel.
It should come as no surprise why the Saudi Arabia-led group may want Guyana in its ranks. With 11 billion barrels already found and a clear line of sight to boost production to 1.3 million barrels a day by 2027, the South American country would be a key new member for the Cartel. The country ranks among the top non-OPEC+ producers set to push global supply growth alongside Norway and the U.S.
Brazil’s prior hesitance to join OPEC was due to concerns about adhering to constant production cuts. However, the country’s impending membership signals a shift in its approach.
OPEC has faced scrutiny for its recent production cuts, receiving criticism from some Western nations amidst the energy market’s recovery from the pandemic. The International Energy Agency (IEA) cautioned OPEC, pointing out the potential adverse impacts of higher crude prices on the global economy.
Presently, OPEC comprises 13 members: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela.
