Alexandre Silveira, the Brazilian Energy Minister, announced that Brazil will join the OPEC+ coalition, approving the country’s membership to start next year.
The announcement took place during the OPEC+ meeting discussing the oil output plan in 2024, as a result of slow economic data from China, which caused the oil price to fall.
The OPEC+ and its allies have been exploring for new alliances in order to increase oil market shares and control oil prices through policies.
However, Brazil is not expected to take part in the group’s production cut in early 2024.
The country is the largest producer in South America with 4.6 million barrels per day (bpd) of oil and gas and 3.7 million bpd of the production are crude.
As of yesterday, OPEC and its allies agreed to cut output for early next year. The voluntarily cut by Saudi Arabia, Russia and some new participants is said to approach two million barrels per day (bpd) after the latest agreement. The deal was said to be fulfilling Riyadh’s goal for this meeting to further tighten global supply for what it calls “stabilization” of oil prices.